This is a sobering picture.  The little bitty red column for which there are only two entries is new home sales.  This represents about 9.5 months of inventory according to the Census Bureau.  Couple this news with the pending resets scheduled for ARM’s and new construction looks a long way off:

I hate to continue to point out bad news, but I firmly believe it you are better prepared when you are armed with knowledge.  Unfortunately, a lot of the regular press is just kicking the can down the road and trying to convince you that the magical powers of Washington have changed the realities of the business cycle forever.