Where is the bottom?

The recent news about Fannie Mae and Freddie Mac are the icing on the cake of the housing crisis facing the U.S. right now. The foreclosure rates have not settled and still appear to be rising. Financing is getting harder to get for home purchasers right now causing less money and interest that is much needed to be invested in the struggling industry. This is not a normal recession or downturn right now like many economists have predicted. When the housing industry can become stabilized and reaches the bottom is anyone's guess. I was lucky when I got my home this April that I had a good salary and down payment to cover financing, but I think I was the exception and not the normal home buyer. I feel sorry for many Americans now, their dreams of owning a home or getting financing are in a big jeopardy until the economy recovers from this mess. At least the prices keep dropping right? Well that is not good news for all the people who bought when the prices were inflated the last few years and now owe much more than their property is worth. I may soon count myself in this category myself - even though I bought this year, I noticed prices falling every month so far. I took this into consideration when I was buying that prices would continue to fall, so I hedged my bets by buying a place close to downtown as data has shown that the most severe price drops are happening on the outer suburbs of the D.C. area.