Profunds index and sector trading

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Steve, I think there is going to be a shift in how the foreclosures get handled. You are right that banks handle their non-performing assets like that now, but the sheer volume of foreclosures that will be coming will change the housing market. The banks will be able to control the pricing because they will control so much of the real estate. Right now, a couple of houses here and there doesn't allow them to do that and they have to bend to outside forces. When they can control the rental price, the upkeep costs can become negligible. Maybe they will "auction" to subsidiary holding companies or perhaps the government may even step in and take us further toward a socialist utopia in which the government owns all of the housing after "bailing out" the banks from all the defaults home equity loans. Either way, there seems to be a definite process in place, planned or not (I think planned), which will eventually consolidate lots of real estate into a few hands.