There’s been some recent articles in the news about shadow inventory and looks pretty convincing. But the banks have two strong reasons to hold back. The first is that actually selling the property forces it’s being marked to market…bad thing for their balance sheet. The second is that they would flood the market and force the price down to the floor in weeks.

And then there’s the banking apologists who explain that they’re just overwhelmed with NOD’s and it’s like the snake eating the elephant…..

But I have a sneaking feeling the all the derivatives attached to mortgages are so incredibly leveraged out that carnage will ensue if this all happens too quickly.