Walking away from mortgage, contributing to crisis and recession?

You are right. He's a scumbag.

I do NOT believe that walking away from a debt with unreasonable terms contributes to the crisis and recession. Every business, including banks have a debt threshold which determines it's time to walk away from a bad business transaction. If homeowner's walking away from their homes was as bad as everyone is led to believe why did JP Morgan announced this week a 3rd quarter profit of $4.2 billion dollars, and all the other banks announced a profit of $2 billion dollars or greater? Only Bank of America declared a loss of $3.2 billion dollars this quarter and that was only because they took a 1x loss of $10 billion dollars due to the Dodd-Frank financial reform laws that affected their credit card business. Wells Fargo recently paid Citibank $100 million dollars as a penalty for forcibly purchasing Wachovia Bank even though Citibank had a pending contract. The banks are making money hand over fist at the expense of the tax payers who bail them out. A survey http://www.fdic.gov/about/comein/files/foreclosure_statistics.pdf by Neighborworks of America found that 32% of the homeowners in foreclosure experienced a job loss and 25% experienced a health crisis. Combine that with other independent data that suggest another 10% of the foreclosures were influenced by a divorce and another 10% intentionally chose to default we can then conclude that as a worst case scenario only 23% of the foreclosures in the market place are directly a result of Sub prime Mortgages. The bottom line conclusion is that if you believe it is negative to reverse a situation that depletes your savings and make some choices to recoup your bad investment is a bad thing then people need to look at the fact that business walk from bad investments everyday, by filing bankruptcy. Homeowners should not be any different. The real criminals here are the banks who chose to refuse to work with homeowner on their loan modifications even though they are making billions of dollars on the backs of people who are struggling. In spite of the fact that the taxpayer's had to give them a bail out which allowed them to modify their assets. Well you know what, if you believe that walking away from a bad debt reflects negatively on a persons character or morals then tell that the US government who when they bailed out the auto industry wrote off billions of dollars in debt and forced the workers to modify their retirement and incentive packages thus saving billions more. Wake up people. The only people losing here is the homeowners. This is not about character or principle its about good judgment.