Big ecnomic news today that can't be overlooked

What with all the other major world catastrophes going on right now, most especially the Japanese earthquake/tsunami/nuclear power plant meltdown, it would be easy enough to overlook a rather small but hugely important article I saw today online:

Home prices falling in most major US cities

Home prices falling in 19 major US cities, with 4 now at lowest level in 11 years 

Janna Herron and Derek Kravitz, AP Real Estate Writers

NEW YORK (AP) -- Home prices are falling in most major U.S. cities, and the average prices in four of them are at their lowest point in 11 years. Analysts expect further prices declines in most cities in the coming months.

Home values in Atlanta, Las Vegas, Detroit and Cleveland are now below January 2000 levels. A majority of the metro areas tracked by the index now have home prices at levels dating back to 2003, just as the housing boom began.

"The housing market recession is not yet over, and none of the statistics are indicating any form of sustained recovery," said David M. Blitzer, chairman of the Index Committee at Standard & Poor's.

As either an economist or just a regular old citizen of this United States, that is big.  

Not finished there, there is also this out today: 

Inflation worries push consumer confidence lower

Soaring gas prices and soured outlook on income push consumer confidence down in March 

My point?

It is not to say "the sky is falling", I can tell you that.

My point is that, as Nobel Prize winning economist Paul Krugman is pointing out more and again, lately, is that now is decidedly not the time to try to cut $61 billion out of the government's spending.  

I'm not all about big spending and we do need to address it and our debt and deficit spending, but to repeat Mr. Krugman, now is decidedly not the time.

I'm concerned that either the Right-wing and Republicans and Conservatives aren't listening and/or don't care because a) they have to cater to the "Tea Party" and extremists in their party so they can be re-elected OR they simply want/need this president and his policies to fail so, again, they can be re-elected.

My biggest concern is that all of those are true.

Links:  http://finance.yahoo.com/news/Home-prices-falling-in-most-apf-2179818115.html?x=0; http://finance.yahoo.com/news/Inflation-worries-push-apf-1954887602.html?x=0; http://krugman.blogs.nytimes.com/2011/03/29/contraction-is-contractionary/;  http://www.nytimes.com/2011/03/25/opinion/25krugman.html?_r=1&partner=rssnyt&emc=rss; http://krugman.blogs.nytimes.com/;