I thought this was a rather interesting story. (Short version: law professor advises mortgagees whose properties are “underwater” simply to walk away from their homes and stop paying for them.)
The most interesting part was where he chastises the “social control” of homeowners by the power structure, who has hit the public hard about the “morality” of stiffing the banks. Predictably, the banks have thrown up their hands in dismay that anyone would be so wicked:
[Brian Faith of Fannie Mae] said, “there’s a moral dimension to this as homeowners who simply abandon their homes contribute to the destabilization of their neighborhood and community.”
If there is in fact a moral dimension to homeowners acting in their own self-interest, wouldn’t you agree with me that it’s absolutely horrific that the poor bankers are completely powerless to prevent it happening? Powerless, I tell you! All they can do is to sit by helplessly and get nothing of their investment back, rather than, I don’t know, a moderately reduced amount just by agreeing to negotiate with the terrorists homeowners.
And so the banks are forced to “contribute to the [immoral] destabilization of their neighborhood and community.” Personally, of course, I blame ACORN.