[Kenny500c]

I hope you all understand the gummint is on the hook for about 90% of all mortgages and as prices fall the losses escalate.

I don’t see any scenario short of hyperinflation that all the mounting debt can be repaid.

[blam]

"I don’t see any scenario short of hyperinflation that all the mounting debt can be repaid. "

I've come to the same conclusion.

[1010RD]

It's worse than you think. Under FDIC rules if a "healthy" bank takes over a failed bank it has an incentive to foreclose against negative equity loans even if they are performing or can perform.

The FDIC will reimburse the amount lost due to the foreclosure. More government problem solving creating.