The stock market’s rebound has been so fast and furious that it might make folks forget that we just experienced a nasty credit crisis and market downturn. Have sinking home values not registered with the national psyche? Surf around on Zillow.com and witness the vast amounts of wealth disappearing over the last few months as homeowners see their most significant asset crumbling on a shaky credit foundation. Of course, institutional money managers are the ones buying furiously and fueling this market rebound. It is entirely plausible that, unlike the average …

Macro

More pain in the housing market anticipated as some homeowners find themselves “underwater” or owing more on their homes than what their homes are worth on the market. According to Mark Zandi at Economy.com (MCO), 10% of all homeowners currently face this negative equity situation. Zandi also sees home prices falling 20% as the economy worsens into a recession. Zandi could be underestimating the damage; homeowners abandon their homes and mortgages at a high rate when they enter negative territory on their equity. Foreclosures and abandoned mortgages exacerbate the problem …