Housing's Negative Equity

The housing market is still a mess. I'm sure the Fed will do everything in it's power to avoid deflation, but the housing market still has to clear. There are too still to many houses on the market.

Negative Equity Breakdown . The authors estimate there are 4.1 million homeowners with more than 50% negative equity, and another 5 million with 20% to 50% negative equity.