Residential Real Estate 2011 Predictions

http://www.businessinsider.com/the-future-aint-what-it-used-to-be-predictions-for-the-2011-real-estate-market-2010-12

With 50% fewer 1st time buyers and less pool overall buyers qualifying for mortgages, how will the banks make their money? I read a report that they are lending more to govt. Or are they going to increase the fees they charge us.