Bubbles implode. And this housing bubble is no exception.

When Greenspan took the Fed Funds Rate down to 1 percent (lower than the lowest rate of the Great Depression), it meant that what HAD BEEN the monthly mortgage payment on a $150,000 house suddenly became the amount of a monthly mortgage payment on a $400,000 house.

And presto - those $150,000 houses became $400,000 houses.

Lookat the highest-priced market for housing in the U.S. - the San Francisco Bay area. Foreclosures, year over year, have risen 622 percent. There have been more foreclosures in that “safe housing market” than ever before in history.

The Case-Shiller study shows that housing prices have decreased across the U.S. by 4.4 percent in August, year over year. That is unprecedented.

I see the housing bubble implosion currently being in the second inning of a nine-inning game.

Perhaps the words “housing bust” are a matter of semantics in our divergence of opinion.

Regardless, my view is that the housing sector is going to get a hell of a lot worse before it ever gets better.