[brewer12345]

Ah, ladelfina, finally joining the Tinfoil Brigade?

House prices will fall for the next year no matter what is done. What I was referring to was actions being taken to unclog the machinery of the credit markets and not have a huge flood of foreclosed homes all hit the market at once. Part of the solution is for lenders to take some losses and restructure loans without going through the time consuming, expensive, and economically destructive process of foreclosure. But I think most of the losses have been recognized in the securitization market, based on prices for the securities and the write-downs that have been taken. Portfolio lenders (i.e. traditional banks that make and hold loans) will show increased loss provisioning for a while, but for most of them this will amount to a modest decrease in earnings that will likely be offset by other factors (drop in rates, fatter spreads, etc.) and not be a threat to capital or solvency.