The mortgage crisis won’t be over until the unemployment problem, job creation problem, and wages-not-keeping-up-with-inflation problems are solved. And until the mortgage crisis is completely worked through, there is no chance of completely fixing our banking crisis. The banking in turn is impeding job creation (and therefore impacting unemployment) by making it difficult for businesses (and individuals trying to start businesses) to get loans. Actually implementing mortgage modification plans is a good and necessary step to slow this circular dance, but it only works when people have at least some money to pay a reasonably priced mortgage — and when banks are willing to work with people.

On the other hand, it does look like housing prices in some markets are putting in a bottom. Someone with adequate capital and patience has the opportunity to put together a nice portfolio of properties, particularly if they can pay cash. For that matter, someone with adequate capital and patience could go into the venture capital business.