The irony is so thick you can cut it with a knife.
The sad part is that hard working middle class folks who lived within their means, saved prudently, and didn't take cash out or borrow big on the HELOC to play -will all clearly end up paying for this whole mess.
The deadbeat borrowers who gamed the system on the ground, and the corporate shysters/political crooks who gamed the system on Wall St/DC will skate away free and clear with their ill gotten gains.
From the Wall St. Journal:
Squatters in the US netting $2.6 BILLION per month!
"The problems will be expensive for banks, and for investors in mortgage bonds, in terms of added processing costs and lost interest income. But for the millions of U.S. homeowners who have stopped making mortgage payments or who are already in the foreclosure process, the upshot is that they'll get to stay in their homes a bit longer. Given that they're not paying rent, that time has value.
Defaulters living in their homes are getting a subsidy worth about $2.6 billion a month, according to a Wall Street Journal analysis based on mortgage data from LPS Applied Analytics and rent data from the Commerce Department. That's 0.25% of U.S. personal income, roughly equivalent to the benefit top earners receive from Bush-era tax breaks."