With wages stagnant and credits tightened, can the housing market really recover ?

The average, inflation-adjusted annual wage of Silicon Valley tech workers, including bonuses and stock options, tumbled from $120,100 in 2000 to a low of $87,300 in 2002, and stood at roughly $105,500 in the first six months of 2009.

The TALF program is coming to an end and the loan market has hardly recovered yet.

Investors have a deadline of today for taking out loans through TALF this month. The program, which provides loans to investors buying the debt, began in March 2009 and expires March 31…. TALF was started to jump-start the market for bonds tied to consumer and small-business loans after sales of the debt plummeted 42 percent in 2008, choking off funding to lenders, according to data compiled by Bloomberg. The program spurred $178 billion of securities sales, according to Bank of America…In making the decision to end TALF and three more programs like it, the Fed said in a statement on Jan. 27 that the economy “has continued to strengthen,” while “the pace of economic recovery is likely to be moderate for a time.” The central bank also said it’s “prepared to modify these plans if necessary to support financial stability and economic growth.”

Here’s yet another pitfall which can trap homeowners. Short sales do not automatically mean the bank is forgiving part of your debt. A deficiency judgment can be placed on the borrower for the amount of the difference. It looks like even in non-recourse states like California, that’s the case.