You know, that is a hidden part of the crisis that I had not considered. If housing and property values have plunged across the nation, then most property owners could challenge any evaluations which did not reflect the drop. The end result could cause a crisis at virtually every level of government from the local to the state level, with the result being that far more states would be lining up with their hands out to the already bankrupt federal government and their runaway money printing machine.
Maybe that would be a good thing - forcing governments at all levels to streamline, cut out the pork and provide only essential services without being nannie states.
Maybe someday they will actually listen to what Ron Paul has been telling them for years now.