I voted Fear. Price levels have not reached desperation yet.
I too said fear, but could also have said desperation.
As far as I can tell, we are in a transitional period between the two.
Roadhouse, the way I see it, price levels will still be (relatively) high when we enter into the desperation phase.
To me, desperation occurs when people reduce their prices as low as they
can afford to put them (i.e. before unsustainable negative equity is crystalised), but it still refuses to sell.
It's at the capitulation phase that prices collapse.
Perhaps others view 'desperation' in a different light ?