From Vanity Fair:
I said at the time, I have a concern that every rally we’re going to have in the financial markets will be a false rally until we break the back of the price correction in real estate. And these things are never over until you have a couple of institutions go that surprise everyone. Bear Stearns can hardly be a shock.
But having said that, it’s one thing to see it intellectually and it’s another to see where we are.
I gotta wonder, what exactly does Paulson mean by "breaking the back" of the price correction in real estate.