http://www.youtube.com/watch?v=J28tLOpzfpA (Housing is more affordable in those middle states)
Regarding the above link: Perhaps a Stimulus Plan that lowers the price of necessities such as housing, food and health insurance would leave room to buy cars, furniture, and clothing, etc. When the people are not buying "stuff" the community looses jobs. AND when the cost of all of this is too high, people use credit to buy rather than pay cash or save money to buy a car. Once they are in over their heads for necessities as well as their "stuff" they cannot buy anymore. There is a limit as to how high prices can go before the whole thing falls like a house of cards.
Regarding the above link: This has been happening in New York for the past 30 years. When I lived there I watched the homeless population skyrocket when the cost of housing rose to astronomical proportions. All of a sudden the homeless were very visible on the streets (1980's). Before this time it was a "big deal" to see a homeless person and somewhat shocking. Now it's commonplace.
I've worked with the homeless since 1992 in California. During this time I've watched as the population grew from a handful of single men on Skid Row to single men and single women (housing prices rose) to single men and single women with children (housing prices rose again) to mom's and dad's with their children (housing prices rose once again) The price of housing has been out of reach for many for a long time and the middle class are now becoming homeless as well.
The cost of everything is out of proportion to what people are earning and therefore they must always be in debt and one paycheck from homelessness. The Housing Bubble broke, however, housing is still too expensive as the price of homes went too high over the past thirty years. The cost of home ownership is beyond the income of most.
We are building a whole culture and population of homeless that are now into second generations. What do you think the future of this will bring?