The 1930's were a period when people who owned houses actually owned their house. By this I mean that they had committed equity in their house and they would do all within their power to hold onto the roof over their heads. This latest shambles has a different twist to it. When a buyer in say '05 offerd up a worthless income statement and when a bank offerd a false interest rate and zero deposit and the two parties agreed to exchange their worthlessness over a property, then as far as I see it the transaction amounted to little more than a "rent to buy option" Now, not only have the buyers reneged on making interest payments whilst enjoying the use of the house, but the banks are off the hook thanks to Fed swaps. Since neither party exhibits any sense of obligation to the original worthless document, is it any wonder that house prices are tumbling at the same time as inflation bits home. The big question is how many years will it take to flatten this curve and how many more will it take to reverse it. regards f9