I find people on this board routinely under-estimate the power of delaying the inventory hitting the market. So what if it fails to stop defaults? The normal population growth probably requires 1.2-1.3M new houses every year, and the builders are only building 500K per year right now. If they can spread the “shadow inventory” into many many years, the effect of this inventory on the housing price (which we care most) is going to be rather negligible.
In the end, procrastination is like masturbation. It looks like you’re just screwing yourself, but it also has many hidden benefits that people just don’t advertise about it.
