The fact that the housing crisis is primarily in just a few area is little mentioned. It is primarily in California and neighboring states Nevada and Arizona, and in Florida and Michigan. I have seen Democrats identify Texas as one of the trouble spots, but I think that is just partisan politics since I live here and don't see any evidence that the Texas housing situation is anything like California. One other thing rarely reported is that most of the troubled loans in the critical states were for re-financing, rather than initial purchases. In other words, many of the troubled loans are to people who were basically speculators. Here is an article on this subject:

http://www.nypost.com/seven/02212009/postopinion/opedcolumnists/the_foreclosure_five_156287.htm