Will new mortgage defaults depress the stock market?

Daniel Alpert, managing partner of Westwood Capital, suggests that owners of homes that are worth less than their mortgage will send banks their keys instead of payments. Additional defaults, as people find cheaper places to live, may add new (foreclosed) inventory to the housing market. The NY Times has this article in its blog - "Dealbook" http://dealbook.blogs.nytimes.com/2009/07/08/are-bank-bailouts-part-of-the-problem/?ref=business