The sucker homeowners are the people who are barely making it now. They will re-fi and make their loans recourse. They’ll pay their ownership premiums for a few more years; they then default anyway when the recession is in full swing. They’ll have nothing to show for their resilience and would be better off walking right now. That goes to show that people who work hard don’t always make it.
The Fed’s job is to take care of it’s member banks which is what they are doing as we speak.
