As the whole idea of blogs is so new, it's doubtful that Lereah's calculations would have taken into account the drops in value incited by these "panic-inciting" blogs.Prices have dropped not because of some blogger 'incited' panic, but rather because in the bubble markets prices have become divorced from the fundamentals (price to rent ratio, income etc). It is flattering to think us housing bubble bloggers have that much power. Many of us housing bubble bloggers have received a bit of mainstream press.
Like someone yelling FIRE! in a crowded theater, the blogs are sure to have an effect ... Albeit a temporary one as people realize the predictions are based on falsehoods.
Yes, we are a having a small effect and we made the housing decline start just a bit sooner. But, the bubbliciousness was unsustainable and was inevitably going to burst due to its own absurdity.