lenders reduce principal for under-water borrowers

[perfectfire]

[SeattleMoose]

"I just don't see how the lender wins by going through foreclosure, particularly when they are facing massive waves of re-posessions, that could drive the real-estate market into the dirt."

Who gives a rip about the lenders? If they were stupid enough to make all these bad loans then let them go down the drain. This is an ethical issue. People who had no business buying a house beyond their means should lose it. Period. Whether that "hurts more" for the bank is moot. Who cares?

Why is it the capitalistic slogans about "free trade" and "let the market handle it" are crammed down the throats of everyone in this world repeatedly by the FED, WTO, and big finance. Yet when push comes to shove and THEY are threatened, all of a sudden a protectionist policy is opted for in favor of "free market economics?"...looks like somebody wants it both ways to their own advantage.

We need the bubble to pop and a recession and associated pain so we can start the "healing process". Things got out of hand and now our glorious leaders are trying not to protect the prudent financially conservative people of this country who had no hand in the bubble, but the very flippers, scammers, idiots, and oinking bankers who caused this whole mess!

This actions speaks volumes about the FED.....go ahead and gamble, Uncle Ben will take of you. Makes me wonder why I try and be responsible.....

[sniglet]

[gills]

Lender forgives mortgage principal --> fed forgives TAF principal --> party continues?