Tired of the "strategic default" discussion? Me, too
It never seems to end. Both sides feel strongly. But sadly, once again I am the only one who is correct. I almost get tired of being right so often!
OK, so what we have here is a big mess. Many people, and many corporations, and the federal government, are to blame. So are consumers. What we have here is a failure to communicate!
Big business -- lenders, governments, department stores, chemical companies, oil companies -- make "strategic default" decisions every day. It is not only OK, it is EXPECTED by shareholders.
When builders leave giant earnest money checks behind because buying that 100-lot development doesn't seem like the great business decision it appeared to be 6 months ago. The builder walks away. Strategically. By contract terms. It's OK.
Consumers are a HUGE PART of the reason we are in this mess. It's not fair to always attack the people who saw a market need (looser mortgage guidelines) and met the need with more liberal products. But it was consumer greed/desire to buy things they had to know they couldn't really afford that spear-headed the demand for these questionable loan products.
Bottom line is, people and companies will do what they think they have to do to help survive.
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