Last week in an article in the Wall Street Journal "Bear Sterns is Tip of an Iceberg" warns of significance of the Bear Stearns hedge fund bailout.

It warns of a possible future unraveling of sub-prime loans (that includes both credit cards as well as mortgages) which would cause higher mortgage rates. That coupled with the already dead-in-the-water real estate market would sink the ship lower. Property values will plunge more. The opportunity for property tax appeals increases because lower priced comparables abound! Take advantage of it.

Higher credit premiums can threaten other highly-leveraged instruments further shaking up financial stability. This could foretell a liquidity crunch that can effect your investments as well as your home’s market value.