[rmnunez]

I really don't see how this should be such a big problem. If we figure banks got too greedy and pushed too many mortgages so people qualified too easily resulting in sellers overpricing properties, now that too many borrowers are defaulting and losing their acquisitions in foreclosures, banks will need to charge more interest to cover the growing level of risk. This should make mortgages harder to acquire and as a consequence bring down housing prices.