You got it right in your post. The little guys are not dead beats. They just wised up and started playing the same game as the banks. The middle class has walked. That puts the whole system in collapse.
As for house prices, in our area prices have taken a fall but how much lower can they go? What’s lower, free? They are at prices that are lower than before the big run-up of the boom.
****The middle class has walked. That puts the whole system in collapse.****
Ripe for more Lobbyist-Care action.
Here’s the latest “scheme” around here...sorry I can’t call it a plan (I’m old school, i.e. pay your mortgage if you can.)
Quit paying your mortgage (even though they can afford it, they say it’s a bad investment...so whoever promised that they wouldn’t lose money and if they did then just walk away), save up all those mortgage and tax payments until the bank kicks you out (usually about 2 years) and then just buy a house for cash with the money you’ve saved because that’s how low prices have gotten around here. Only problem is, the folks who choose to honor their contract and stay in their houses are losing too because this type of behavior is driving prices even lower.