Yeah NSR, that’s a good description of the lagged effect I mentioned. It is pretty amazing how inefficient the process was (some combination of inexperience/understaffing plus probably some regulatory stuff).
Anyway as to this:
“Was it distressed inventory clearing or credit freeing up that drove the market back up? Serious question and I’m not being argumentative.”
I don’t know and I don’t really think that’s an answerable question. But as it happens, contingent inventory (short sales) started to drop at around the same time that the market began to recover. As to what caused what, I don’t know.
