Of course we can always follow Iceland's lead and say FU to the world bank and forgive all mortgage debts in the United States.
Atta boy Iceland!
Your post got me thinking about the economic consequences of massive mortgage forgivness.
Iceland is a relativley small economy compared to ours and during the market collapse decided to let their bamks go bankrupt rather than bail them out.
After reading rescource after rescource I think if not for TARP we would jave needed those bullets and seeds 4 years ago.
Also it goes against my Conservative ethos with respect to personal responsibility. The shlubs who saved for a down payment, payed their bills on time and bought a house they could afford take the hit and the people that over financed and couldnt read a contract get off.
Its just wrong on a fundamental level.
Also most homes are mortgaged through Famnie and Freddie so the tax payer not the banks would take the hit.
Iceland just gave the debt back to the banks basically but I wonder if its possible at all to get a small bussiness loan there now. Or personal loan.
Plus the impact it would have on our over all economy by forgiving mortgages would be devastating. It would crush an already weak confidence and forever change the relation ship between lender and lendee.
You want to get to a point where guns and seeds are neccesary for survival real quick just stop credit. Its that simple and its what perpetuated the great depression. Well that and FFRs Keynesian approach to righting it.