The saying that says, “Where there’s muck, there’s gold”, so is it in the housing market where local banks are fueling the home sales markets with moves to sell out their excess of foreclosed homes that fell victim to ill-loans approved by corrupt loan officers. The sales of such homes turns tangible assets back into fluid currency for use in other business they have to partake in.
This is the problem with the housing market, so much cash that was sent in from all over the place yet not much homes being sold to return that same invested cash back into the business where it is needed. Cash is vital even if it is represented in other financial standards as long as it is ready for use, called upon for whatever use the business may deem it necessary.
The housing market failing to sell homes, prevents investments made into the housing industry by banks, big and small all unable to recover their investments for a very long time. This is the plight of most small banks who have investments locally in their communities that like any other market is failing to move keeping their investment in the property out of the bank.