No the metaphor was meant for the uber bears who think, thought, continue to hope that the tsunami cannot be stopped. There are those believers that the govt will not go down with the ship. In reality the system has been forever changed and that the tsunami can indeed be diverted, reduced, or whatever you want to call it. There are plenty of people who can get workouts and mods, and will be able to maintain home ownership for quite awhile because of them. There are some who will default again. As long as the system can keep whittling down the numbers it will work. Walkways and jingle mail will happen as well but the system has shown resiliency and will let those people live for free until the system decides to deal with them individually.
What is quite interesting is the deal on the rates these people are getting in light of potential drastic interest rate hikes we can and will likely see in upcoming years. If you are saying Joe Buyer buys a home in 05, gets a loan mod in 09 or 10, has a 4.75 cap and in 2014 we are at 12% rates, he is doing pretty well. Screw it if he has to give his profits up if he sells. He is probably pretty darn happy.
Also I am quite skeptical of the ability of the banks to track owner occupancy as well.
