Reply #17: Blame to go around. Some due to very bad lending practices on the part of the banks. Some due to

[RBInMaine]

very bad decisions on the part of SOME consumers who got in way over their heads. People needed to make better decisions. I myself was approved for about $35,000 more than I could really afford. I didn't take the bait. I borrowed what I could afford, got into a good FIXED rate, and have now re-financed under an even better fixed rate taking nine years off my term and building equity much faster.

People who got in way over their heads and made bad decisions should not be helped. They need to get out of those bloated situations and downsize their lives into reality. Too many lost their shirts by playing the "buy and flip houses" get-rich-quick game on investment properties. They were foolish, risked everything, and lost. ** One thing good that should come out of all this is a correction in the housing market and an end to the stupid housing speculation and everyone needing to outdo the Joneses. Too many Americans got greedy needing the biggest car, the biggest house, and on and on. People went on a credit spree. Not everyone, but we need to get back to responsible personal finance again. AND, the banks that made the stupid risky loans and which have now failed deserved to fail, some of those people should be fired and/or sued and/or prosecuted, and the new regs should make damn sure they aren't allowed to do it again. Blame and consequences to go around.

Those who are innocent victims of unemployment and were otherwise responsible should certainly be helped, along with those who are just innocent collateral victims of the market circumstances. But to those who just made shitty decisions and should have known better, it is time to downsize your life and start making better financial decisions. Stop being greedy. Life is not all about material wealth and status.