It’s very sad story. And I felt that the saddest part was really a sidenote on how the government banking bailout is actually PREVENTING people from being able to work out deals with their lenders. You see, the lenders like to have futures that they can (no pun intended) “bank” on. They might not make a killing, but f they know for certain that the federal government will let them package their bad debt together and sell it back to the feds for a known price, the bank will always choose that over the uncertainty of 1) your ability to stay employed and 2) the uncertainty of the market.

This reminds me of an article I recently read where an out-of-work Boston banking exec documented the entire process of his foreclosure. When the home finally went to the auction block, just three people showed-up to bid. Two would-be home buyers and a guy who represented the original lender. The bank outbid the two people and bought it back from itself. But instead of slapping a for-sale sign on the front lawn, they just locked it up. Apparently with all the great govt bailout dollars floating around, the bank intended to just wrap it up with dozens of other homes and package it as a huge lot to the feds. So, in essence, the federal banking bailout is competing with the free market and that (in my opinion) results only in lowered prices. The bailout is not helping the market. The bailout is helping the lenders. Exactly why the government should leave the market alone.