Strategic Foreclosure is becoming more mainstream. It is a movement in social economics. More and more are doing it, so many credit ratings will drop.

Will a credit rating of 600 in three or four years now be the new 700? If those who could afford their underwater mortgages start walking away, what holds for the future of those buying houses? I find it interesting that those who are paying loans that are much greater than their home value (underwater loan) are technically referred to as having Negative Equity.

Well, when we think we have negative equity in poker, what we do is fold.

I cannot blame them for folding, sure seems like the right thing to do.

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Want to know how the economy got f’ked up? (sorry Mom, but the f-word is the only one to describe what you are about to hear.)

Take 45 mins and listen to this:

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All credit to This American Life : Inside Job for an outstanding program.

Find more about Magnetar and the failure of our economic system that caused the current crisis: ProPublica.org

Bet Against the American Dream from Alexander Hotz on Vimeo.