I am not an expert on this. However, it's probably worth mentioning here what I've understood from economists: the banks are not nearly as broke as they say the

I am not an expert on this. However, it's probably worth mentioning here what I've understood from economists: the banks are not nearly as broke as they say they are -- the ones that are still in business, anyway. If they were really that broke, they wouldn't have taken the TARP money to buy out competitors and give upper management the fat bonuses. The banks that are going out of business ... well, they aren't, really. They're being bought out (e.g. WaMu) and the assets are now held by the parent bank. In that light, I think the original commenter's point stands; the houses aren't worthless.