CLARKONOMICS: The Conference Board -- a highly respected organization known for issuing reports that usually only appeal to pointy-headed economists -- offers a look-see at where the economy will be heading over the next year.

First, the bad news: The numbers are the worst they've been since 1991, which was 2 recessions ago. Meanwhile, unemployment reports are fairly ugly.

MDA DataQuick, a real estate information service, finds that the average home value in California is down 38% from peak to trough. It got to the point where only the wealthiest could afford to buy even a starter home in the Golden State. In a more extreme example, prices are down 44% in the Bay area.

Clark is often accused of being overly optimistic, so on to the good news: In housing, it's always darkest before the dawn. Yes, you'll probably continue to see moderate price declines in some markets throughout 2009, but we're coming back to where housing prices will slowly become more affordable.

This historical rise in home values was the rate of inflation plus 1 percent. But starting sometime in the last 6 to 10 years, prices began spiking way above inflation. That led to a speculative frenzy and housing prices soon bore no relationship to reality.

Now we're getting back to real -- this is the beginning of the healing.

On the topic of the economy and jobs, some markets won't recover until probably 2010. There's a lot of fallout we're seeing right now, including a surge in food stamp applications. Food stamps are a necessary safety net, as is unemployment compensation. Don't be too proud to accept either should you need it.