The banks have already been able to cope with dribbling out defaults. The question is not whether there are still more foreclosures to come. We already know that there are alot of foreclosures and short sales still in the pipe, more then likely a few more years worth.

It should be painfully apparent that distress will not crash the market as the powers that be have a come up with a strategy to deal with that issue. Relying on that to bring your pricing down is a poor strategy.