Shadow inventory. What? Where? When?

Shadow inventory. We wrote about this 2 months ago. Where is it ? What is it? It is around the corner like the experts say? This is where the banks do not re-list properties that they have foreclosed on, or they just don't foreclose at all. The debate is about if this is the right thing to do. I think it might be one of the only smart things the banks are doing right now. Common sense says why flood the market when that will only drive prices down instead of limit the inventory. Look at the diamond industry, diamonds are not rare stones and I would say they have done a pretty good job at keeping prices high. Is it ethical? I will leave that up to you!