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The Great Recession saw U.S. banks foreclose on untold thousands of homes, which have been snapped up by big investors at bargain-basement prices.
The Great Recession saw U.S. banks foreclose on untold thousands of homes, which have been snapped up by big investors at bargain-basement prices.
(Rich Pedroncelli/AP)

Wall Street sees gold in them thar foreclosures

U.S. housing has been on a slow, sometimes rocky road to recovery over the past couple of years. But it remains in fragile health, vulnerable to tight credit conditions, rising mortgage costs, falling affordability or new economic downdrafts. And now we have another sign that this crucial sector could be headed for renewed trouble: Wall Street’s financial engineers are coming.