Is because its so rare. To expect our entire economy to run on such rare principles is pure wishcasting. It would be nice if business ran on those principles. It would also be nice if I had a monopoly on rare unicorns that produce clean renewable energy that can power cars and retired a billionaire.

It isn’t.

Even if more homeowners are willing to walk away than they have been in the past, it is certainly nothing new in the commercial real estate market, and if the end result is that borrowers are more leary, well… given the events of that last decade is there really any reason to doubt that that would be a healthy market correction?

Sure, there’s reason to be concerned about the availability of home mortgages in America, but we’re still trying to recover from the $$MM lent to speculators in No-Income-No-Asset loans that “went bad.” Of course, those deals were bad from the start, and maybe the lenders/investors/“other speculators” simply need to start behaving rationally again.

/rant