Bigbuilder

The Current Market Atmosphere: Easy Money Hard to Come by

There is simply no quick fix to the fact that we are VERY over levereged as a nation and as individuals. It will take years of savings to unwind and that saving effort will tap out the consumer and reflect the gross misapplication of capital into consumption (e.g. SUV's and lavish homes). Essentially we are in a marcoeconomic Chapter 11.

Those who sell investment products do so to generate income for themselves NOT to help their clients. All of Wall Street knew the last few years were based on lies, but they let it happen (with help from Republicans AND Democrats).

I think the future will be dark.

Nowhere Near a Real Estate Bottom

The statement that the bank will receive "nothing" is simply wrong. The bank will not get what it bargained for. It will lose lots of $$ but the loss will not be total.

That having been said, I do agree generally with the observation that it will take some time for balance to return to the residential market. I saw an analysis that indicated that the current total value for residential property in the USA is about $22 trillion. In order for that total value number to return to the long term trend line that measures the relation of the value of housing to the total economy, there needs to be a drop in value of $4 trillion. This adjustment could come via increases in the rest of the economy, but in any event, this is a long painful journey and those who tied up significant capital in assets that consume $$ rather than produce $$, the pain will be great.