I must’ve missed the part of the bubble where people were forced to sign contracts to buy houses and take out a mortgage. Many of these people were making a bet that prices would continue to go up and they could make a profit. Nothing wrong with that.
Why should the mortgage holder get to keep the winnings from the bet if he/she guesses correctly and erase the bet if the guessed wrong? If this were really acceptable business bahavior, what good are contracts?
There are bankruptcy laws, you should be required to go through them in order to walk away from a home loan or other contract unless the other party agrees to some settlement.
I don't know, but I ask you this.
Why are banks allowed to borrow money from the Fed at 1% and charge 35%?