[tm22721]

The lender can look solely to the property for repayment.

Where have you been ?

Banks have been issuing 100% real estate loans during this latest bubble. Some even offer cash back loans.

But deflation of the real estate bubble is not what worries me. There are 90 trillion dollars of bank derivatives that are the source of real concern.

BUMP

[longtermmemmory]

There is such a think as "lien stripping" in bankrupcty.

The unsecured portion of a debt is stripped off a collateral and thus the payment is readjusted to only the secured portion. Happens with automobiles and real property.

[Fish Hunter]

90 trillion dollars !!!

Holy SHEET, I knew there was something funny with the timing of this law. The banks know they will need to get their fingers into our fast-food paychecks after we default on our interest only $2000 a month mortgage. ( Because our real jobs got shipped out to India !!)

F H

[cricket]

Does Paul Krugman ever get it right? Don't think so. . .first would question every word this man speaks. . .content and context. Then process whatever facts are left.