Exactly!!! It is not as many claim to easy the pain but it is about unloading the paper. This train wreck is going to happen, nothing can stop it now.
See "train wreck" is where you and I part ways, at least in degree.
This very real problem is a financial one, not an economic one.
If the 6-8 million most at risk homeowners walk away from their mortgages it will be due to their foolishness in selecting foolish loan options, not due to sudden unemployment. So yes the bond holders get killed, the mortgage brokers get downsized, home builders languish, property values stagnate or in some places sink but everyone still goes to work, goes to the mall, buys their next car etc. There are just more renters out there, that's all.
So ya the 20% of the economy is financials get killed but it is business as usual for the other 80%