I suspect some naysayers may be found to sing a different tune if they themselves were $200K underwater. Interesting thought. No matter, is there really any debate that the ongoing government rescue is propping up the financiers, those who were in the business of lending for profit, those who were in a position to risk-model and insure properly, those who would and should suffer the losses as, um, a business loss, as opposed to seeking taxpayer money?
The fact that taxpayer money is being used to offset financier losses is due to financier strategy to minimize losses via a government rescue. And the government’s willingness to play along. Blaming the guy who is defaulting to minimize his own loss entirely ignores the make-up of the finance industry. Trust me, all you will hear from those in the finance industry is how they effed up badly and what they can do to control the damage. I have not heard one ill word from anyone about the underwater homeowner who decides to default and get off of a sinking ship. Those who lend and invest made terrible mistakes – that is what this is about.
