NO sales will occur. FDIC top exec on CNBC stated that home price are lower than Indymac ($15B held on hand by FDIC now) mortgages so FDIC will lower rates on owner occupied rather than foreclosure. If FDIC takes over a few more banks, FDIC will become bigger holder of mortgages and will do ANYTHING to protect value of homes.
Ron Insana has been the only level headed guy on CNBC who has been screaming deflation and today stated that reflation is the only way out of this mess. Forget fed increase in rates for years. May even cut rates.
