David F. Seiders, chief economist of the National Association of Home Builders, said the unexpected weakness in recent months had caused him to shave his forecast for housing construction this year. It now shows a fall of 23 percent after a 14 percent drop in 2006." (emphasis added)
No one expected any weakness in the housing market except for those who did. They were looking at crap underwriting, speculative excess, unreal acceleration of debt to income ratios, same day flips, week long camp-outs for condos coming on the market, and the constant chattering by the 'serious' people that this time it really was different.
So of course, nobody expects the Spanish Inquisition:
NOBODY expects the Spanish Inquisition! Our chief weapon is surprise...surprise and fear...fear and surprise.... Our two weapons are fear and surprise...and ruthless efficiency.... Our *three* weapons are fear, surprise, and ruthless efficiency...and an almost fanatical devotion to the Pope.... Our *four*...no... *Amongst* our weapons.... Amongst our weaponry...are such elements as fear, surprise.... I'll come in again
Nobody expects a credit crunch, as amongst the weapons are hope, delusion, mumbo jumbo risk diversification and off-booking losses.....