Economists and analysts alike continue to sound alarms that the housing market is the greatest risk to the project 3% GDP growth in the US economy.

A lot of statistics points to dangerous cooling down of the housing market and its impact on the overall consumer spending. One statistic stands out: in the last six months, we have averaged 2 million new home starts. The last two times we had such robust starts we had 2.5% growth in new household starts.

Currently, we are just around 1% in new household formation growth, which caused unsold new homes number reached its 19-year highs, and overall unsold homes reached a nine-year high.

And the home builders continued their suffering. William Lyon Homes, one of the nation's largest homebuilders, on Wednesday reported new orders during the quarter ended Dec. 31, 2005 fell 6.7 percent, while its backlog from homes built in California, Arizona, and Nevada rose 10.7% to 1291 units.

Adding to the pain, most home builders' share price has dropped by about 40% from their 52 weeks high.