Housing haunted by shadow inventory in 2011 Video

There is good information in this video on the state of housing.  Still seems the MSM is blaming Fannie and Freddie and letting the bankers off the hook for their role in the debacle.  Unless we get the root causes of this meltdown out in the open we could struggle for years to get the confidence back that will get the housing market going again.  The shadow inventory of foreclosures could double the current amount of foreclosures the market in the near future.  There is no way for these large amounts of inventory to be absorbed into the market without weighing down home prices.  If the government does hold the banks accountable and push for a legitimate re structuring of mortgage debt the country will end up on the 10 year recovery plan that still may not work. 
The administration sided with the banks and allowed them to use the hold and hope plan so they could avoid taking losses but all this did was prolong the agony for many people who burned through their savings and 401 k funds to try and ride out the recession.  Very few people can ride out a 5 year recession if they have any job instability and others who have seen 50% drops in housing values are doubting a recovery more and more the longer we see stagnate and declining prices. 
There is system debt restructuring that needs to occur for the country to get back on its feet.  The clock is ticking while we are digging deeper and deeper into housing abyss.  It is not a moral hazard issue anymore because everyone stands to lose if we continue down this path. 


Good Video on shadow housing inventory and prospects for 2011



The Housing Boom and Bust

Housing Boom and Bust: Owner Occupation, Government Regulation and the Credit Crunch