Falling home prices are bad for people who have a resetting (ARM) mortgage, and zero or negative equity in their homes. If you're not planning on selling your house anytime soon, it's not a big deal for homeowners.

It's a great thing for home buyers though. I'm just hopeful that the government doesn't try to stop the housing crash when it happens. Most ARMS haven't adjusted yet, so we haven't even seen the beginning of the carnage.