Does the real estate meltdown and eroding stock values warrant concern?

"Federal Reserve Chairman Ben S. Bernanke may be finding his optimism on consumer spending dented after the rout in subprime mortgages and decline in stocks.

Fed policy makers, who set interest rates today, may tweak their statement to reflect risks to the "moderate" economic expansion flagged at the prior meeting. In the past four weeks, more than $700 billion has been wiped from U.S. stock-market value and reports showed late payments on subprime mortgages jumped to a four-year high."