I think we are double counting foreclosures and delinquencies. The accounting and recordkeeping for mortgages is a global disaster. I am hearing/seeing this from various legal real estate people.
How do we deal with this? Maybe we should just draw a line in the sand. By June 30, 2011, say, if you cannot prove that you hold a mortgage, then you don't. Maybe some people walk away scot-free. Most of these mortgages are already written down to near zero. At the end of the day, we might benefit the no-good-niks along with the truly needy. At least, we will know what the true housing inventory is and what is not.
Want to know why the market likes today's labor report? It may not be because of QE II. Isn't QEII being over-analyzed? Over-anticipated? Overvalued? Maybe it's because the Obama Administration is in Titanic-like trouble for the elections. The administration, other than jacking up the government payroll, has done very little with the Keynesian spending it threw around like drunken sailors on shore leave in Thailand.
If we are producing any jobs, it is off the books. As a result, we will have a tax-less recovery. People are going to work off the books, not paying payroll or income taxes.....