Unfortunately, a side effect of this is that the most irresponsible buyer who bought a home in 2005 and is now not paying the mortgage often gets to stay for free for potentially years in a house that is more than he can afford, while those of us who were responsible end up in lesser accommodations and paying substantially for them. Can you say moral hazard?

I also find it particularly ironic that the Democrats controlling the House, Senate, and White House, while calling themselves champions of the poor and underprivileged, are fighting hard to keep housing prices elevated to benefit the rich and upper middle class along with their campaign donors, the banks and the NAR, at the clear expense of the bottom 40% who are paying rent and whose rents would fall if housing prices were allowed to correct to the levels they would without government intervention. Champions of the poor indeed.

One theory is that it’s not in the banks’ best interest to foreclose with the current accounting rules. And, if they don’t, then who does? I’m concerned this could linger for a decade

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