I read yet another article stating housing prices are bottoming and the only concern is, what will happen when all the foreclosures hit the market.Really? Do you think housing prices have bottomed? The only “unknown” I read about over and over is the backlog of foreclosures.What do you think? Looking into the future is always a guess, but all the articles seem to say the same thing: (1) we’re at, or near, bottom (2) prices should begin to increase by 2013 (3) if the glut of foreclosures hits the market, prices could continue to decline.But what I don’t see discussed is the economy. I can find no reason for the economy to rebound, so why should house prices? We’re still not “creating” jobs. Our country still doesn’t manufacture anything to export. I was hoping for a “works project” where our government could put thousands to work rebuilding bridges, replacing outdated sewage systems, restoring our infrastructure – but that hasn’t happened.Where will the money come from to restore the economy? How are people going to be able to pay more for housing next year than this?My concern is more about the election than about the backlog of foreclosures. Not so much who’s going to win, but just the fact that so much of our economy is held steady falsely until after major elections so no party is blamed for anything unpopular. Our country doesn’t even have a current budget, which is illegal by the way. Congress voted to wait until after the election to deal with the budget because they don’t want to ruffle the public’s feathers during an election year.So, what happens after the election? Eventually, interest rates have to go up if we want the economy to stabilize. Right now, interest rates are being regulated at an unhealthy low which is not allowing the dollar to do what it needs to do to reach an equilibrium. Banks don’t want to lend and, who can blame them? I wouldn’t loan my money at only a 4% return. It’s not worth their time, hassle, or risk! And, why would our citizens want to put money into a savings account that pays only 1/2 percent return when inflation is higher than that? If we put money into a savings account, it has less buying power at the end of the year than it had at the beginning!I’m writing all this gloom and doom to ask the question, have housing prices hit bottom, really? What will cause them to rebound? Who will be able to afford the higher prices? What will happen to the economy after the election?As for me and my household, we’re preparing either way. We don’t want to be broadsided by listening to the mainstream media and being lulled into a false sense of security. The pundits are actually wrong in their predictions more than they’re right, but the public continues to turn to them for guidance.Keep your eyes and ears open, especially in this, an election year. Always plan for the worst so that, when the best happens, you reap huge rewards. My suggestion? Be conservative these next 12 months. Don’t overspend because things feel better. Never buy based on the belief that things will get better – buy because your purchase makes sense today. When buying real estate, buy with equity and cashflow today, not based on some commentators prediction that things will be worth more next year.Opinions?