Frankly, I agree with much of Blodget's prediction except here:
"The government announces a new New Deal, finally investing in the country's infrastructure, in the hopes that this will stimulate the economy (which it will). Investments include broadband, green tech, wireless, physical infrastructure, et al."
Henry Blodget: Bailout a Done Deal, So What Happens Now?
especially re: green tech, broadband, & wireless
(more likely the economy would be stimulated & more people employed by oil drilling off US coasts & building nuclear plants)
I also don't think housing will drop 40% to 50% everywhere - just in certain select locations where it's been waaaaay overpriced.