Some readers suggested a topic surround some recently published books. "I used to like David Bach when he was teaching stuff that actually made sense (eg., save regularly, don’t spend more than you earn, automate your savings so you don’t miss the money, stay out of debt). I guess he has tossed that aside to support a greedy industry."

Here's a Bach related article: " Renting is not the route to wealth. In fact, statistics from the Federal Reserve indicate it's a good way to stay broke. 'The argument is that it's cheaper to rent. That's the whole argument, and it's simply not true,' Bach said. 'As long as you're alive you have to live somewhere. The question is, will you pay someone else to live there, and make that person rich, or will you pay yourself to live there and make yourself rich?'"

One reader said, "I read that (SF Chronicle editorial) this morning and was completely disgusted. Then I decided maybe I should just move away from the Bay Area because it’s obvious that people here have gone insane."

Another replied, "What I find strange about that article is that it was written by someone whose 'beat' is real estate and, theoretically, should know better. There doesn’t seem to be one iota of concern about what could happen if the market turns (or, hell, if it just goes flat and the 'bank' is no longer open). And all the stuff about how she’s glad her mother was able to pursue painting, travel to Europe, etc., rather than work and save. This article is a real sign of the times."

"'You me beat to posting that article from the SF Chronicle. I also had the 'unbelievable' reaction. That article shows the whole mentality of most people have changed from being debt averse to debt-wealth. This will not end well. I also just got a copy of Jim Talbotts new book."

From a report on Talbots outlook. "When John Talbott gazes into his crystal ball to discern the future of America's housing market, it isn't a pretty picture he sees. 'I don't want to be a Chicken Little,' he says, 'but it's gonna be bad for housing.'"

"A former visiting scholar at UCLA's Anderson School, Talbott views the housing market as a house of cards on the verge of collapse. He predicts rising interest rates and plummeting property values, followed by widespread foreclosures that will not only affect the real estate industry, but almost every aspect of the economy. 'It's already started,' says Talbott. 'We've had 20 years of up, up, up with real estate. This spring will be brutal.'"

"Talbott regards the latest data on the Bay Area housing market as mounting evidence for his prediction: rising interest rates, decreasing appreciation, 10 straight months of declining sales and, in January, the lowest number of sales in five years."

"The problem, he says, is that home prices are way overvalued. As evidence, he points to the growing discrepancy between Bay Area home prices and rents, an indicator commonly used by economists to determine a property's true value. RealFacts puts the average Bay Area apartment rent in the fourth quarter at $1,324; DataQuick calculates that the typical home buyer in December committed to a $2,867 mortgage payment."

"'It paints a very scary picture,' Talbott says. 'Something has economic value because it has cash flow. If you discount for general inflation and go back 120 years in history, you'll discover that, in real terms, housing prices were relatively flat until 1997, then (they) shot up about 70 percent.'"

"To buy these overvalued homes, he says, many consumers overextend themselves financially by borrowing more from banks. They end up paying an inordinately high percentage of their monthly income on mortgages. In Los Angeles, he points out, the average new homeowners, usually a young couple, are spending 55 percent of their monthly income on a mortgage payment."

"Banks are lending more, he says, because they are sticking to their old qualifying formula of computing the ratio of the loan applicant's salary to the mortgage payment. They're doing this, he said, without adjusting for inflation. 'So the banks are using the same stupid formula. They convince these young couples to borrow a million-dollar note that they're never gonna get out from under.'"

"To make matters worse, Talbott says, an increasing number of borrowers are taking out variable-rate and interest-only loans. Half of all Bay Area home buyers used interest-only loans to make their purchases last year. With so much of their income already relegated to their mortgage payment, says Talbott, even a small rise in interest rates will push many to, and beyond, their limit."

"People should protect themselves, Talbott says, by divesting themselves of any investments in real estate. They should sell their vacation homes. They should get out of any variable-rate or interest-only loans. They might even consider selling their primary residence, investing that money in something other than real estate, and renting for awhile. 'And after this mess,' he says, 'cash will be king.'"