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Housing Crisis: Far From Over

According to one expert, future mortgage resets and continued shocking lending standards mean more pain is ahead.

Whitney Tilson of T2 Capital painted a picture of gloom and doom on Thursday’s show, saying he sees the mortgage mess as still in the third inning. (What do you think? Vote in our poll here.)

The way Tilson sees things, it’s hard to see a bottom when two million families are still going to get their homes foreclosed on this year. That’s going to drive down home prices through 2009. Also, there’s still $440 million worth of mortgages due to reset this year, which will further depress home prices as defaults go higher.

So what does Tilson think could be the ultimate answer? Congress.

Until Congress steps in and passes a massive bailout plan to help homeowners, the underlying problems can’t be resolved. But the politics of an election year muddy the prospects that this could happen anytime soon, according to Tilson. Watch the videoto see his in-depth analysis on other aspects of the mortgage crisis, as well as his take on this week's big moves in Fannie Mae and Freddie Mac .

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Trader disclosure: On Mar. 20, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Najarian Owns (LEH) Puts, (AA) Calls, (MSFT), (AAPL), (C), (CSCO), (MS), (USB) Puts, (XLF), (YHOO); Macke Owns (YHOO), (DIS), (INTC); Seymour Owns (MER), (AAPL), (CSCO), (F), (HAL), (INTC), (MBI); Seygem Asset Management Owns (EWT), (CPA), (EEM)

Whitney Tilson’s Funds Own (FFH), Are Short (MBI), (ABK), (LEH)

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