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.