Drop In Rates
I listened to a somber podcast from Pimco's Bill Gross. It's also available here. In it he goes into housing and its affect on the economy. He predicts that because housing is so important to the economy, rates will drop to keep housing values from falling. He (Pimco) predicts that rates need to drop 120 basis points to keep home values at current levels. If rates stay where they are, than home prices will drop 20%. He believes that the Fed will not allow a 20% drop in values - it would be too devastating to the economy - he expects rates to drop by 60 basis points the "sooner the better." Read or listen to the whole thing.

(The podcast is approximately thirteen minutes long, with four minutes (of the thirteen minutes) at the end describing Pimco's required legal disclaimers and disclosures. Got to love the Gov!)