If It Reduces Inventory - Is It Good?

This post isn't an answer, but more a question. In the article "Soaring Foreclosure Numbers Mean More Prey for Vulture Funds", the San Diego Business Journal discusses funds and companies scooping up foreclosure properties...most at "pennies on the dollar value."

This country is founded on capitalistic and entrepreneurial principles, so it is only logical to see this activity from those able to fund it and seek out bargains in bulk. It's housing's Costco. One perspective is to appreciate the removal of large numbers of foreclosure homes from the market. This should help to stabilize falling prices. Obviously, these "vultures" are expecting to profit from these purchases, and probably in the not-too-distant future.

Maybe the activity itself is telling us a turn-around is getting closer?