How Does 7 Million More Foreclosures Sound?

Wonderful news on the real estate front. Banks have something a prisoner’s dilemma. They can foreclose on busted mortgages and further thwack real estate prices. Or. Hold off for as long as possible and hope the market re-inflates.

In any event, you don’t want to be the first bank to jump and make real all your losses. This is why the Fed and other regulators are poo-pooing mark-to-market accounting in favor of revenue stream valuation. But guess what? If no one is making payments there is no revenue stream either.

Reader Comments

  • You clearly didn’t get the memo, Jeff. The economy is doing fine. The stimulus worked. These are not the droids you are looking for.

  • Skyler the Weird

    Unfortunately most voters are weak minded and subject to Jedi and Sith Mind Tricks. We need more Toydarians.