I agree that most FBs will walk away without batting an eyelash. That’s the reason why I don’t believe that consumption and the general economy will really hurt. We’ll have a recession but after that, things will move along.

I can’t picture people who are used to purchasing all kinds of junk tighten their belts, stay home, drive old cars and make other sacrifices to afford the mortgage payment. No, they will give their houses to the bank and keep on consuming as usual. Housing will stagnate but consumption will not.