[quote=spdrun]Why are foreclosures a “crappy” thing to do? They’re a NECESSARY thing, and in fact make it easier for banks to lend.

Banks need to be able to easily enforce the terms of their loans if they’re able to give loans. The reason that sub-prime loans for cars are still popular is that they’re easily and quickly enforceable.[/quote]

What’s crappy thing to do is extending loans to people knowing that it will reak havoc on their finances. The purpose of the past few years was to tighten lending standards (a) so we won’t have another banking/corp/housing fiasco (b) so common individuals won’t get screwed (again), since as most americans demonstrate over and over and over again, that give them a long leash, they will hang themselves financially… by borrowing more than they are able to handle, with no backup plan, no margin of error…So long as the minimum payments can be met….

In as much as I hate obamanator trying to turn banks into a scapegoat and excuse individuals from personal responsibility, I’m not a proponent of the other extreme of aforementioned Romney in which banks/financial institions lending to people beyond their means knowing very well it will screw them. In other words, I don’t think some people that got screwed with the housing bust #1 have really learned to avoid financial ruin #2 that is a very distinct possibility in the next few years, especially IF Romney and crew do get their way and screw the everyone from the upper middle class downward.