It's foolish advice. If you're stupid enough to commit yourself to 30 years of crap, then you'd better stick with it and pay it off. I'm not saying that a lot of lending institutions weren't culpable, but so are the idiots who signed up for these loans. Wah, wah, wah. Can't keep up with your payments? Then get a 2nd job.
Everyone wants instant gratification. Doesn't anyone know how to WAIT for anything any more???
There's a LONNNNNNNG WSJ article today concerning this which I will read at dinner tonight but the basic idea is that defaulting on things has lost a lot of its moral stigma. And from a cold business standpoint, someone who had very little equity in the home anyway won't lose too much by walking away. People see the banks getting bailouts and they want theirs. Also someone who played by the rules may feel like a sap continuing to do so when their home value has fallen so drastically. Perversely the article says this might start to be part of the solution to the housing crisis. I doubt that but I will read...
"When the snows fall and the white winds blow, the lone wolf dies but the pack survives." Winter is Coming Now this is the Law of the Jungle—as old and as true as the sky; And the wolf that shall keep it may prosper, but the wolf that shall break it must die. As the creeper that girdles the tree-trunk, the Law runneth forward and back; For the strength of the Pack is the Wolf, and the strength of the Wolf is the Pack.
