Welcome to Capital Account. New home construction in the US fell in July, according to Commerce Department Data, another reminder of weakness in the housing market despite recent signs of recovery. It is not unexpected if you talk to Barry Ritholtz, author of “Bailout Nation,” who has been saying the “zombified” US housing market still has a long way to go.

Plus, from Zombie markets to Ghost inventory, we talk about the often overlooked underbelly of US housing, which is haunting the recovery. We get a forecast from Barry Ritholtz, CEO of Fusion IQ, of when the foreclosure machinery will be creaking back to life.

And, we all remember when Jon Corzine claimed he did not “know where the money went” from MF Global segregated accounts. Now it seems like he might get away with it. According to the New York Times, criminal investigators are citing lax risk control and disorder, not fraud, as causes for the disappearance of over one billion dollars of customer money at MF Global. We hear Barry Ritholtz’s colorful remarks on how prosecutors should go after MF Global.

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