The Japanese tried several run-the-clock tactics and all it did was drag it all out.

I agree with Analyst – this is about the bank slowing down their rates of foreclosure – which triggers the requirements to write down the loss – and maximizing their cash flow. It’s about extracting the maximum number of payments and the maximum amounts the borrower will consider paying for as long as they’re willing to do it. Give the borrower just enough hope that they might somehow be able to survive the bust intact and be in a position to get back on the rocket for the next 300% bull run.

I haven’t been around for a while. Have you guys discussed the possibility of the incomplete return-to-trend yet? What happens if the current correction cycle stops short of returning to trend and starts into increase prematurely? Do we set ourselves up for another even more devastating round of losses or is the general concensus one of no blood – no foul?