This is a recovery?

Not if you listen to an official with the Federal Reserve who monitors commercial and residential real estate. In testimony before a House subcommittee, Jon Greenlee said loan quality "deteriorated significantly" for both large and small institutions during the second quarter. Most of the deterioration was in residential mortgage and construction loans. Now it's true that we were still in a recession in the second quarter, but it's also true that those bum loans must still be dealt with. From Greenlee's testimony:

Results from the Federal Reserve's Senior Loan Officer Opinion Survey on Bank Lending Practices in July indicate that both the availability and demand for bank loans are well below pre-crisis levels. In July, more banks reported tightening their lending standards on consumer and business loans than reported easing, although the degree of net tightening was well below levels reported last year. Almost all of the banks that tightened standards indicated concerns about a weaker or more uncertain economic outlook, and about one-third of banks surveyed cited concerns about deterioration in their own current or future capital positions. The survey also indicated that demand for consumer and business loans had weakened further.