Many of those who are losing their homes due to foreclosure today are going to want to purchase again, havnig learned from their mistakes.
I see a majority of them saving, rather then spending the extra money freed up after the foreclosure, so they can do it right the next time.
There are going to be those who will spend the extra money, there always are, but I think many of them will use the experience to re-evaluate their habits.
A significant portion of the population still would prefer owning over renting.
