Why wouldn't the millions of negative-equity, no-down, crashing prices homedebtors just walk away? Sure makes economic sense to me.

People make economic decisions every day. Whether or not to buy that new dress, or to go on that vacation, or to order dessert with dinner, or whether to ask for a raise or look for a new job.

The millions of underwater homedebtors, especially those who put no money down and are therefore simply renters already, are slowly and surely going to make the economic decision that they're MUCH better off getting away from their debt-trap. Morally, it's wrong. But economically, it's right.

Many will try to sell for a price based on what they owe, and not what the property is worth, and they will fail.

Many will stay only as long as their teaser rate stays unchanged, and then they will bolt.

And many have already stopped making payments and will stay until foreclosure.

But the truth remains that economically speaking, these homedebtors will be better off turning in the keys. The Bush/Paulson/Banker plan isn't about helping these homedebtors. It's about helping the banks and bondholders who hold the bag.

If they were truly concerned about the homedebtors, they'd be advising them to stop making payments on the depreciating house they couldn't afford anyway. But they're not - they're concerned about the banks.

Since they won't give the correct financial advice, I will:

HOMEDEBTORS OF AMERICA - IF YOU ARE IN A HOUSE YOU CAN'T AFFORD, AND YOU HAVE NO EQUITY AND A TOXIC MORTGAGE ABOUT TO RESET, AND THE HOME'S PRICE HAS CRASHED, YOU ARE MUCH, MUCH, MUCH BETTER OFF GETTING OUT NOW.

STOP MAKING PAYMENTS, ENJOY A FEW MONTHS OF FREE HOUSING, AND GET READY TO MOVE TO A PLACE YOU CAN AFFORD.

YOU ARE NOT A "HOMEOWNER". THE HOUSE IS NOT YOURS TO LOSE. YOU WERE LIVING A LIE, LIVING BEYOND YOUR MEANS, AND NOW IT'S TIME TO FACE YOUR FINANCIAL REALITY.

HSBC, in desperate (and obvious) attempt to prevent a $45 billion SIV mortgage cancer firesale, moves the sludge to their balance sheet today

Ah, as the SIV turns...

It's fun to watch these investment banks and their ENRON-like off-balance-sheet shell games. These banks simply got caught holding the bag when the Housing Ponzi Scheme collapsed, and now they're trying to sweep the carnage under the rug. Good luck with that.

First you had Hank Paulson's hilarious "super-SIV", and now you have HSBC doing their own thing today.

It's all a bit complicated, but all you have to know is that the value of this paper has crashed, the banks don't want to "mark to market" or sell on the open market (or else they may simply fail), so they're doing ANYTHING they can to prevent this cancer from being valued. ANYTHING they can.

Of course, in the end, this sludge will have to have values assigned. These are public companies after all. Ones that have auditors I'd imagine. Right?

Even ENRON was able to hide the salami for awhile. But we all know how that turned out... Note I'm now short HSBC via March '08 puts.

HSBC backs SIVs with $35 billion to prevent fire sale

HSBC Holdings Plc, Europe's biggest bank, has stepped in to support its two structured investment vehicles -- Cullinan and Asscher -- with funding of up to $35 billion to prevent forced sales of assets.

HSBC one of the biggest players in the structured investment vehicle (SIV) market, will consolidate $45 billion of assets and related funding from Cullinan and Asscher onto its $2.1 trillion balance sheet and set up new debt-issuing vehicles, it said on Monday.

Their woes have led to fears of fire sales of many billions of dollars worth of securities, further hitting prices and sentiment.

Think your money market funds are a nice safe places to park your cash? Wrong. Be afraid. Be very afraid.

Guess who was one of the biggest investors in toxic SIVs and CDOs?

Money market funds.

Your money is not safe in these safest of safe funds. Get it out. Now. If you need to park cash, get it into FDIC insured accounts or US t-bills that even though the dollar will devalue, unlike money market funds you won't lose your principle.

Do it today. You'll be glad you did.

GE Money Fund Breaks the Buck; Others Scramble to Cover Losses

A short-term institutional bond managed by General Electric Asset Management suffered such extreme losses from mortgage and asset-backed securities that it has offered investors the option of redeeming their holdings at 96 cents on the dollar.

Bank of America Corp. (BAC), and others, are reportedly propping up their money-market funds in a frantic effort to cushion against possible losses on debt issued by structured investment funds.