10 Year Treasuries are at the lowest level they've been since 1958. The effects of the asset price decline will last for years:

These strategists are even making unsavory comparisons between the United States' current troubles and the decade-long stretch of economic stagnation and eventual deflation that followed Japan's own bursting stock market bubble.

"The question is whether the real economy can shake off the impact of the implosion of asset prices. I personally don't think it can," said Richard Gilhooly, senior fixed-income strategist at BNP Paribas.

If real estate prices start to drop then we may actually enter a deflationary recession.