[quote=livinincali][quote=flyer]
As far as exploring the possible options available in closing the “wealth gap,” I’m very much enjoying reading the in-depth analysis both you and CAr are providing. This is a big issue, and one that I believe will effect more and more people as time goes on.
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The answer to closing the wealth gap is super simple. When the next crash occurs, DON’T BAIL ANYBODY OUT. The end. It’s really that simple. In most cases one man’s wealth is another man’s debt. Let the bad debt go bad and the wealth gap resolves itself.[/quote]

I totally agree. Don’t even try to do a loan mod or moratorium for underwater/overleveraged homeowners.

Foreclose and short sales immediately. That way, the rest of us can buy them at 30-40+% off with cash, rent them back out with positive cash flow, wait for people to complain about not being able to qualify for a loan to buy, wait for banks to offer subprime loans again, and wait for subprime borrowers with very little skin in the game overpay for a home they can’t afford with borrowed money they really can’t afford.

Oh wait, that sort of already happened… Most people can’t afford/qualify for a home, a much smaller percentage of the population owning even more real estate and assets… While paychecks continue to remain stuck in neutral, asset prices have not..So those with assets and counting less on a “wage” paycheck enjoying the now larger wealth gap.