This NY Times article hails home owners that are well underwater on their homes, to walk from their mortgage. If the big banks can walk from their debt, why shouldn’t you? Well Henry M. Paulson Jr. declared that “any homeowner who can afford his mortgage payment but chooses to walk away from an underwater property is simply a speculator — and one who is not honoring his obligation.” (Paulson presumably was not so censorious of speculation during his 32-year career at Goldman Sachs.)
Of course this action has serious credit repercussions, but cares to hold onto property that won’t reach it’s paid value for 60+ years. If the banks can liquidate bad debt like tossing out a bubble gum wrapper, why shouldn’t you right! We’re no longer a country of risk anymore. Go ahead and buy that new car, on credit even! You can’t afford it but you really really want it (and have convinced yourself you deserve it too).
Phil Collins – “Take Me Home” (12″ Extended Version)
[audio:http://homepage.mac.com/cavecybernation/media/blog/2009/12/PhilCollins_TakeMeHome_ExtendedVersion.mp3]
