At yesterday’s Fannie Mae Investor/Analyst Conference Call, Fannie Chief Economist David Bernson presented a short PDF slide deck The Outlook for the Economy, Housing and Mortgage Markets. Here’s his slide #4.

The striking feature in all three graphs is a forecast (the red lines) of marked deterioration in the next few months, then a screaming turnaround into a positive trend sometime next year. I don’t know what the Fannie prognosticators who run their models call this thrice repeated hockey-stick pattern, but I believe the lay term is miracle.

Doom readers please help me out here. Do the above graphs make any sense?