No Aid or Rebound in Sight, More Homeowners Just Walk Away

[keepinitreal]

http://www.nytimes.com/2010/02/03/business/03walk.html?hp

[DeadManCrawling]

If everyone put their numbers on the table and looked at them from a pure, analytic, business point of view, we would see two things.

1. A short-term bloodbath in banking.

2. Either a gigantic crash or a huge reset, probably dictated by the government.

My heart tells me we will see the crash. What happens after is anyone's guess, but I cannot see any outcome that is good for lenders, borrowers, or the country as a whole.

[BCA2009]

The bloodbath option would be the best thing, it would hurt like hell for a few years, but the cost of real estate would reset and the economy would get a fresh start and banks would return to strict common sense stanards for lending money. The bad debt that is out there is not going away. At the current rate it could take a decade for the system to flush out and the banks and goverenment will not admit to there own responsiblity for the situation.