" So they'll work out terms with their clients since a lower price still brings in a profit. Its better than a write off on the property in a tight market. So they'll be willing to accept terms they'd refuse to even consider under normal circumstances. And these circumstances are anything but normal. "
Mmmmm-hmmmm...
... and when profits at lending institutions start to fall dramatically due to these desperate measures, how is Wall Street going to react??
We just may be seeing 1929 in slo-mo...
(And the federal gummint might just try to bail it out, bankrupting the nation in the attempt..)
Their stock prices will fall? So what?