walking away from your home when you can afford it is VERY UNETHICAL, but only because the taxpayers are now bailing out the banks because of it.
Wrong, we are having to bail out the banks because the banks made the assumption that their side of the risk was covered because RE always goes up. We are having to bail out AIG on credit default swaps because some banks were smart enough to realize that there was a real default risk and that RE does not always go up, while at the same time AIG felt that the credit default swaps were always money-good since RE never goes down.
One of the biggest problems here is that credit default swaps are not regulated as an insurance product while in fact they really are. With a credit default swap, you get paid ‘x’ per month to cover any eventual loss in principal should the loan default. Looks, walks and talks like an insurance product.
