more , from UCLA economists, on what will happen when the bubble bursts:
UCLA Economists Still See a Bubble in Housing Market: "The state's economy has been boosted artificially by increased spending from Californians feeling wealthier thanks to home price rises of 40% in the last two years, the UCLA forecasters said. When those prices stop rising, consumers will rein in spending, possibly triggering a recession, they said.

And it won't even take home prices to fall, just to flatten out, they said."