Then, they have a new election which is projected to be a guy who will finally Default on their Debt, collapsing the Italian Banking system.

When this happens the demand side(collapse) will overpower these low inventory supply levels. 

The Federal government pumped billions into Fannie Mae in the last real estate bust to prevent its collapse, and it would be a disservice to taxpayers leaving 3% mortgages on the books that shouldn't be there. 

If you remove them and the roof collapses, they were necessary.

When that happens, rents collapse.  

There's no guarantee in business, except FDIC insured, and that's if gov. doesn't collapse :-)Can gov. collapse during recession ?

Then my world collapsed my children and I were in our car and hit by a truck doing 65mph while we were at a dead stop.

I fear the financial collapse of our banking system would resultin a lose of funds to  

Seeing as, on a national level at least, prices have only gone down twice since world war 2 (1991 &the housing collapse), why do you think prices will go down during a recession?

I live in CA, and like many investors, when the RE market collapsed here, I looked around for a better market to invest in.