Remember in the movie Titanic, when the ship breaks in half and Leo and Kate rush to the top of the boat to give themselves a fighting chance, while others slide down into the cold waters below to their sure deaths?
We're to that point.
It's now every man for himself. Financial survival is the goal. Help the women and children if you can, but if you're dead, you can't be of much help.
And yes, I have a BIG problem with people who sign contracts and walk away from them. Or who borrow money and then don't pay it back. But we're to that point, and I'd rather see banks, hedge funds and corporations screwed over before I see real people take it on the chin. People gotta eat. And when your loan resets from 3% to 10%, you gotta do something.
So if you're a housing gambler or homedebtor who's facing the ARM-reset-disaster, stop stressing, and get ready to walk away if you can't refi. Don't forget to gut the house and put everything on ebay before you move.
And remember HP'ers that it was banker buddies Bush and Greenspan who gave these failed gamblers the green light in the first place.