Two-thirds of Sacramento sales for May were foreclosures

Yes. Two-thirds.

Global Guerrillas reports relevant, if uncheery, news

The Chicago Fed has found that under normal circumstances, every increase in the foreclosure rate by 2.87%, there is a 6.68% increase in violent crime. Further, housing values fall by nearly 1% for each foreclosed home within 1/8 of a mile.

This could lead to what they call The Swiss Cheese Effect

As US cities, suburbs and neighborhoods begin to look like swiss cheese, there’s little doubt that the US will experience a radical increase in the formation of gangs, militias, and other violent groups. A volatile mixture of wealth/expectation destruction, neighborhood decay (due to empty and abandoned properties), and a visceral sense of economic betrayal/abandonment will be the drivers. Connectivity (both local and global) will ensure that the damage spreads virally.

It’s difficult to see how this will not happen, at least in some places.