There is a giant racket working to hustle money out of real estate. Driven by greed, the financial institutions created CDOs, investors poured money to buy them. The government enjoyed additional revenue stream, and the home buyers got to own homes.
Now that the racket is busted, the government is doing it its best to repair the racket, pumping money into the banks, providing low % mortgages, offering loan modifications, giving tax incentives and etc… The banks are doing their best, holding off the inventories by delaying the default process.
It might seems like an absurd conspiracy theory, but it is happening right in front of us. The government wants to keep the racket up. It will keep the constituents happy, keep the revenue stream high. Why would the government let the market run its course. The situation seems to make a lot more sense in this model, at least for me.
From this perspective, it really might be morally acceptable to strategically default. It is part of the game.
One might even want to expand on this concept. Suddenly the hidden cast in the society might just reveal itself. The have will have more because the power of the government backs them up. Just look at the banks (GS especially), after losing all the money, and with all the toxic assets still on their balance sheet, they were able to report record profit, which isn’t hard to do when the government is giving them free money.
Compare to all that, should we even focus on a single person choose to walk away for his financial interest?
Let’s finish this up with a quote from a gangster himself:
“Its a racket. Those stock market guys are crooked.” – Al Capone
