In Nevada, more than half of all mortgage borrowers are upside down

Business Week reports:

Nevada has the highest percentage of negative equity: More than half of all mortgage borrowers in that state are now upside down. The average loan-to-value ratio for properties with a mortgage in Nevada was 97%, or less than $8,000 in equity. That leaves the typical mortgaged homeowner with virtually no cushion for the rapidly declining home values.

What better proof that real estate is going to be priced much lower in places like Nevada? Fannie,Freddie,The Fed,first time homebuyer programs and the rest is history.