Are we there yet?

Re “Record home losses in state,” July 23

Despite all the hopeful reporting of a bottom in sight for the housing market decline, every genuine indication is that the market is still in a free-fall with no end soon.

The key factors that made the subprime loan scheme work in the U.S. were foreign banks that gobbled up the cleverly packaged commercial paper. They aren’t going to do that again.

With market and regulatory factors eliminating subprime loans, and with a mandated return to more traditional loan-to-income ratios, homes are still priced far out of reach of the average -- let alone median -- household income. Assuming an average household income of about $75,000, the average house price must decline to about $300,000.

We have a way to go.

John F. Rossmann

Tustin