Are banks inadvertantly financing the recovery?

[Ron Nawrocki]

The government officials are taking credit for the great job they've done to get the economy crawling forward. Consumer spending and retail sales are up. But no one mentions where that money is coming from. It's not from jobs and investments.

There are 5+ million people not paying their mortgages and living rent free in their homes for an average of 1.4 years. Gee, $7-9 billion per month not spent on mortgage payments will buy a lot of cars, iPads, and beer.

Add to it that to banks these mortgage payments are revenue, so they're showing good profits. But these payments will never be collected!

I'm bearish until banks wake up and implement the TACT Program. They need to kick out the folks that default and sell the properties to qualified buyers.