I know there is a very large shadow housing inventory which they are pretending doesn't exist

The talk is that Bernanke will try and target the mortgage market with any possible QE moves this week, to try and free up lending so that inventory will start moving

However, despite that happy talk, we both know that the US housing market will not really recover unless

1) the JOB market improves and wages improves

2) younger workers are able to earn enough to feel comfortable paying back both those huge student loan debts AND take on a house mortgage as well

They say the young are putting off starting families because of the debt burden they're carrying.

Until this improves, who is going to be buying the millions of high priced homes the retiring baby boomers are going to be putting on the market ?

But that is not an acute issue.

Gyrations today in the market suggest either a total disorganized screwup in the software end, or a move ahead of a possible imminent shock to the system

I'd rather think its the former, but not ready to rule out the latter....