Only when the ‘To Big to Fail’ do it. When a regular ‘Joe’ does it, its being a ‘Dead Beat’ there will be asomeone along in a bit to explain about the difference. ;-)
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.