IOW, it's worse--by far--now than it was just after Bear/AIG (etc.)
It's even worse than that (!!!) if you lost your job; you can expect a 17% negative hit to your earnings when (and if) you get a new position.
So it's not just losing 10-20% of the value of your home; it's not just reducing spending on goods to effect larger debt-reduction. It's also that there's a significant deterioration in household income.
Graphic from BigPicture: