Lords of the shadow inventory -- over 3 million homes locked away in shadow inventory near peak levels. Prices must fall to prevent massive drawn out drag to economy.

"Some interesting new data on shadow inventory has emerged. Even though on the surface it appears that public inventory has fallen sharply shadow inventory figures are still near their peak levels with 3.35 million properties foreclosed or at least 12 months without a payment. The estimates produced show that if the trend continues with no drastic changes the housing market will not return to normal for another decade"