[ex-Texan]

REIT insiders sold off their stock six months ago. They made a killing. As for the opportunity presented by sub-prime lenders, that is another group to be cautious about. Those people are going to suffer the most:

http://www.businessweek.com/magazine/content/06_17/b3981065.htm

[ARealMothersSonForever]

That is the point. REITs got pillaged, but nobody had to force a distress sale. Why is that? I posit that the asset still had adequate market value. People are not mailing in their keys because they can not make their ARM flex payment. Fannie Mae and Freddie Mac have been scrutinized, and the gut check is factored in. No Enron-like activities were indicated and the market chugs along. Home improvement spending is still at very high levels, even with new construction tapering down. The manufactured housing bubble along the gulf coast had an impact, and some folks are sliding mobiles in to rural property. Recreational and second home purchases are still common. As long as overall economic activity remains solid, it just does not make sense to see a total market correction of more than 8-10%. I just do not see it.