UPDATE: Read the Washington Post, Mortgage Delinquency Reaches Record High.
Read The New York Times, More Homeowners Facing Foreclosure.
Then reread my solution for the economic mess
I think that the economy would be better off if the government had spent the money used to bail out Wall Street financial institutions (some call them banks, but I think that using the term banks when referring to those institutions is a misnomer), and instead had spent it on stabilizing the housing market with a program like Remortgage America, as we discussed at length on several programs.
Of course, all the government officials who own stock in Government Sachs would be poorer, ergo, the looting of the treasury by the robber financial institutions.