We shouldn't. And those banks who were all too willing to participate in this scam, when they should have known better, should eat those loses as well. They make billions in profits every year,so they can well afford it.
But, they will raise interest rates to recover loses instead. That is the other shoe everyone is waiting to drop.
I like easy loans... I like them quite a bit. I don’t like people ruining them for everyone else. If I want to go big, these easy loans were there. In the future, these easy loans are more difficult to get, effectively removing one of my power tools... all because a bunch of drunk jackasses chopping off their little fingers.
“But, they will raise interest rates to recover loses instead.”
.....hmm....when they do that, could that trigger another tsumami?: credit card debt.
......the mountain of unsecured credit card debt worries me more than real estate....at least with real estate the creditor can sieze the house....what do you sieze from a Gold Card pauper?