Banks run the show: 1) They hold the assets (REO foreclosures) 2) The decide to make the loans to sell those assets. Now if you were a bank owner, with cost of borrowing near zero, why would you ever make a loan to sell the asset at a loss, at the bottom of the market (if you don't have to, which is now the case)? This is going to supress the supply side and keep foreclosures from weighing to heavily on prices - prices will stabilize higher. The banks actually have incentive to make qualification to borrow difficult until prices are high enough to move latent supply without locking losses. I see massive write ups once this gains some momentum, combined with fiscal stimulus and more dilution of the dollar. Money printing is on the banks' sides. This will reverse the damage to past dilution. caveat: bank stocks may be worth a lot of dollars, unfortunately those future dollars likely won't be worth as much as today.