The Cleveland Federal Reserve just posted a series of maps on its web site detailing the impact of the Housing Crisis on Cleveland, which is one of the hardest hit cities out there.

The number of U.S. homes heading toward foreclosure more than doubled in the first quarter from a year earlier, as weakening property values and tighter lending left many homeowners powerless to prevent homes from being auctioned to the highest bidder, a research firm said Monday.

What bernanke is saying is that lenders should reduce loan principals, instead of just interest rates, thus reducing the pressure on mortgage owners facing foreclosure. As motivation for lenders, he offers up the schtick that the foreclosure filing and process could take well over a year, and could end up costing more than a prinicpal write-down. This is extortion, plain and simple.