The Foreclosure Mess

The Great Recession was triggered by the collapse of the U.S. housing bubble. Despite TARP and all the programs launched by the Federal Reserve to revitalize financial markets, the volume of residential foreclosures has continued to grow. And the foreclosure mess still casts a foreboding shadow over the recovery. How is this likely to play out? What are the implications? What opportunities and threats are on the horizon? We'll explain.

Mortgage foreclosures are probably the biggest remaining threat.....