[gunsequalfreedom]

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.

This is true. But we must go back to the original sin if we want to find the true culprit. The culprit is not the homeowners making a business decision to walk from a bad investment. Let's start with S&P and Moodys, the ratings companies that said the consolidated mortgage packages sold to investors were good. They were getting a commission off the sales. They were motivated to rate them as good so they could put money in their pocket. The homeowners are just making sure their money stays in their pocket.

[EyeGuy]

“Let’s start with S&P and Moodys, the ratings companies that said the consolidated mortgage packages sold to investors were good. They were getting a commission off the sales.”

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Whoa!

The racist Communists via Fannie Mae certainly did enough damage on their own, however that appears to be a structural problem with the foundation of our markets.

Call me naive, but is this not a FUNDAMENTAL compromise, and conflict of interest at the heart of our financial system?