Let me understand your position. If a Main Street business man created a stupid financial product and it goes bad, he eats the loss because his business is too small to impact the country. However if you are a banksta, you can create a stupid and flawed product and if goes bad, he can have the government modify it because he is too big to fail. Sounds like we do need a little socialism/facism by telling the banking industry (and other industries) they cannot exceed a certain percentage of the GDP, otherwise they can act recklessly and recoup their losses by threatening our country that they are too big to fail.
Not sure how you got all of that out of my short post.
Most people will still continue to make their payments if they have the money. Because the alternative is to lose their home. Its only when everything breaks down will payments stop. Its all about confidence.
This decision won’t have an impact such as was suggested.