Foreclosures Aren't Going Anywhere.

A recent survey shows that more than 14 percent of borrowers are having trouble paying their mortgages, especially as unemployment starts to play a larger role than the subprime fiasco that helped kick off the recession. Meanwhile, 9.6 percent of borrowers are delinquent on payments, and 4.5 percent are involved in a foreclosure -- taken together, 7.4 million households, the highest level since 1972.

Especially given the problems with the administration's mortgage modification plan, this isn't welcome news. If anything, it should be another argument for using TARP funds to deal with unemployment rather than deficit reduction, as House Speaker Nancy Pelosi and other congressional Democrats, frustrated by the pace of real economic improvement, are urging Treasury Secretary Tim Geithner.

-- Tim Fernholz