There are people on here a lot more knowledgeable on this than me, but I think a lot of it has to do with something called Level 3 assets, and other incorrectly valued financial holdings.
Basically, there is still a lot of $#!^ to hit the fan in the form of downgraded and devalued securities thanks to a lot of bad paper that’s still out there performing worse every day.
No clue when this will catch up to the market, but my guess is around the time banks realize holding onto foreclosed homes until they go back up isn’t going to work.