Subprime's return is another sign that lending is loosening. 

Provided lending practices haven't overly loosened up, which I'm currently purchasing a home with a traditional mortgage and can tell you for certain this bank has not, then I see the majority of the market continuing to rise at a reasonable rate. 

As the market creeps upward, lending practices have to loosen to keep the inventory moving but nothing can go up perpetually. 

This practice by banks will contribute to keeping the jobless rate numbers high until banks loosen their lending restraints.

The main goal of the bailout was to loosen up credit.

Now, I am raising private money so I can hold the properties that do not sell within 6 months and just do owner financing with them until the credit crunch loosens and buyers can cash me out.

It should be easier for our buyers to get loans.That said, I suspect many banks and other lenders will still hold the purse strings tightly for RE, even if they loosen up other lending.

But, like someone else posted earlier, there was a very concious effort on the part of our elected (congress) and unelected officials (Greenspan and the heads of FM & FM) to loosen lending guidelines.

I messed with the faucet some, it loosened up, and then bam -- the water is a-flowing.

Something else I do if I'm not in a talkative mood but need to return calls, I'll call a friend and chat with them for a few minutes to loosen up.