''The Waltz of the Zombie Banks''

From Counter Punch
By Mike Whitney


''The banks are keeping houses off the market to trick people into believing that prices have hit bottom. But prices haven’t hit bottom, in fact, they still have a long way to go. So, what’s  going on here; what do the banks hope to gain by withholding supply?

The banks want to make it appear as though prices have stabilized, because, once they stabilize, then potential buyers will emerge from their bunkers and go on another spending spree. That, in turn, will allow the banks to offload more of their distressed properties at minimal cost. That’s why they’re withholding supply, because it increases demand and buoys prices. But, keep in mind, that “existing inventory” only represents a small portion of the total number of homes that will eventually need to be sold, so analysts who make their calculations based on that number are grossly understating the size of the problem.''

read more