Interesting view on why banks are raising capital. It definitely reduces govt.’s influence. But the banks seem to be mostly servicing the loans, not owning so won’t we need to see the owners (e.g. Pension Plans) raise capital or start to admit to losses before extend and pretend ends? Or do the banks own enough securitized loans that they have an impact?

Agree with John, the **real** numbers look like there’s a lot more downward pressure to come. If lenders want to keep inventory artificially low, they do so at their own expense, because when word gets out that you don’t have to pay your mortgage anymore (because “Washington sees people in their homes, and short-sales are not favorably viewed”), it’s all over.

So even though it appears that inventory is down to the lowest levels in 3 years, things are about to get much, much worse than they’ve ever been. I mean the numbers are not even close. Or am I missing something here?