But, sadly, the news about AIG and Lehman Brothers and the natural reactions that have ensued have ground lending among banks to a virtual halt. The financial markets hate uncertainty, and there is uncertainty to spare in the headlines of the last few days. If the banks won't lend to each other, they certainly are not going to lend to many individuals this side of Warren Buffet. All the good effects of a lower housing inventory will be delayed, prices will continue to drop in all but the most stable markets, and those for whom their primary homes will provide the cash for their next homes will stay where they are.
However, if you have cash to purchase a vacation home or second home, you can just about name your own terms. That is good news for any of us who have followed Polonius's advice to his son Laertes in Hamlet, "Neither a borrower nor a lender be."
Polonius also said, "Brevity is the soul of wit," and so I will stop here.