Stocks are down bigtime today...
It wasn’t the reckless lending that caused the financial meltdown, it was bundling the reckless lending into derivatives that should have been rated as junk, but weren’t.
Most of the people that I know who walked away from their mortgages did it for financial reasons that had little to do with their ability to pay. Most of them got away with transferring all of their consumer debt into their homes, walking away and saddling the rest of us with the cost of their new cars, expensive clothes, extravagant lifestyles, etc. etc. etc... The consequences to many people who did this were negligible.
I sure hope not. Normally, we get to enjoy a “boom” period before a financial collapse. The past 8 years have been pure misery.