Shadow Inventory Revisited: Silent Alt-A Mortgages, Southern California REO, and the Great Public Swindle.

I think you saw this coming. In the most e-mailed story on Friday, many of you sent in a link from the L.A. Times showing a confirmation of shadow inventory. One home does not make a trend. But connect that home to Bernard Madoff and you got yourself a fantastic story of absolute cronyism and corruption that we have grown accustomed to from the banking industry. Now one home is merely an example but there have been a group of people that actually deny the existence of shadow inventory all together, an argument that makes you feel as if you are talking to someone who still believes the world is flat. (more)