White is an unethical twit. Yes, banks wrote a lot of paper to people they shouldn't have, with made-up dreamworld numbers. But they didn't hold a gun to anyone's head to get them to sign. Anyone who commits to a debt they can't afford SHOULD suffer some pain if their house of cards collapses. That is how mother nature educates people who didn't pick it up in school. I don't think the banks should be off the hook either- if they write bad paper, they should have to eat part of the loss.
Yes, I know, some people suffer financial reversals through no fault of their own, and should have a way to start over. That is what bankruptcy laws are for. But people who still have jobs, but happen to notice that their McMansion is worth less than they owe on it, I have little pity for. Shouldn't have bought such an ego palace in the first place, fool. Houses lower on the food chain have held their value a lot better, and you can still sell them for something close to what you paid, in most areas. There are several 10-year-old beige subdivisions around here, maybe 1/4 built out, that haven't had any new starts in five years. But due to the CCRs requiring McMansions, they won't be built out anytime soon. At some point, the developers will walk away from the vacant lots, and they will tax-revert to the city. Maybe they will sell them to the neighbors, or make some nice unofficial pocket parks once nature plants trees in them.
-- aem sends, ranting.....