Bank of America extends its foreclosure freeze to all 50 states.

The banks have been very slow to foreclose anyway and this legal snafu gives them a justification for extending their internal delay-and-pray policies.

The fact that the policy has been extended to Arizona which wasn’t involved the in signature brouhaha shows, perhaps, that their true intention is to slow down foreclosures and, more importantly for the banks, to slow down the booking of their foreclosure losses.

If we went back to the olden days when the banks had to mark-to-market the value of their real estate assets, this economy would adjust much, much faster… but then we would all see that the too-big-to-fail banks are actually insolvent.