[quote=Nor-LA-SD-GUY2]Freddie & Fannie mae have much the same plan starting in April.

WallStreet/DC 2
main street 0[/quote]

And that’s where I have a big problem with this entire “tsunami of foreclosure” argument that some people have mentioned before. If banks are going to be packaging up these homes and selling them in bulk to private equity and investment firms, yeah institutional money might be able to get them at 50% off, but they certainly aren’t going to be selling them at retail for 50% off.

Government might be dumb and not properly value properties. Banks might be dumb in that they have too many properties to properly value things. But private equity certainly isn’t going to be *that* dumb.

And once these banks start shifting ownership to institutions, then these institutions (presumably with cash reserves/etc) can then hold onto them, essentially controlling inventory… I mean, p.e. firms aren’t going to be selling these at firesale prices either….

So, me thinks common mainstreet is going to get shut out.