The depth of American’s underwater mortgage debts is truly staggering. $3,700,000,000,000 That’s not the amount of debt outstanding, that is the amount Americans are underwater. Principal reductions are not going to make America whole again. Nobody, not even the US government can afford to write down amounts that large. The biggest principal reduction programs proposed so far are less than $100 billion. That is less than 1/37th of the problem. In short, principal forgiveness is not going to solve the [Read More...]
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