Investors and DOW traders will throw a hissy fit any time the government tries to deflate a bubble. It’s what they do. Screw them, they’re the ones who got us into the mess in the first place. Home prices won’t be rising and they won’t be seeing their pre bubble returns for some time, and will have to deal with it.

I heard a thing on NPR this morning about refinancing and how a homeowner who’s 300K house was now values at 130K and can’t make payments. He’s getting the option to extend his 30 yr variable to a 40 yr fixed, drop his payments in ½, and stay in his house but is pissed because the amount owed, when all is said and done, is going up ~100K.

That’s a damn good deal IMO if your house is you home and you don’t want to lose it, which is where he was headed. That’s the whole point, not to bail out your irresponsibility, but to keep the roof over your head. He was the one who bought into a overvalued home, spread his finances thin, and now has to eat the bloated value he paid.