Reply #3: Now How Many Homeowners Have Second Mortgages...

[KharmaTrain]

Remember that rage? Refi your house a second time for cash and get the money now while the getting was good. Houses that shot up from 100k to 250k sure were delicious targets as were the people inside who were promised that house values would always go up and here's a chance to cash in on the boom. Many of these were the first to get calls when the deck of cards began to collapse and is the next wave of foreclosures and default on the way.

I doubt Japan also had credit card debt anywhere near what we see in this country...a silent financial servitude millions are caught in...people who had protections stripped away a couple years ago in the bankrupcy bill that is the root of the sub-prime mess. It removed the last of the vapid regulation and now the same banks want their buddies in the beltway to save their asses.

Someone asked why should the government bail out the banks before the consumers/homeowners. Damn good question that can be debated around. It can be said that by propping up the banks it will keep the market from sliding much further thus retaining what equity people have left...but that theory only works if its followed by some regulation and/or consumer protection/relief that forces the banks to share the protection as much as they share the indenmnity. Freezes on certain types of interest rates, putting homes and other critical assets at the back of the line in a foreclosure/bankruptcy and then let the market find its bottom...it will anyway...better the sooner than the later.

Most important...this country needs to stop squandering billions each day in a war for profit that has destroyed this economy...and remove from power those who support and enable the profiteers.