"Very true. If this meltdown had not been so global.... Once recovery is under way, return to normal valuation should follow. "
Druid, This is a subject that I have been mulling over for months.
I finally came to the conclusion that "Normal" has changed for good. Or at least for a generation.
I would look for a new normal, that is closer to the normals of the Carter Admin.
Back then, (not so long ago) you could not buy a house unless you plopped down 20% or had a VA loan authorization. Normal then was a far cry from normal now, and I believe we are going back. Housing is and will continue to be our largest sector by far, but it's going to be a lot different or better said, all the hype and BS (called progress) of the last 35 years will be erased.
Perhaps it is for the better.