How cutting the mortgage interest deduction might actually ACCELERATE foreclosures and walk-aways

as someone who is obsessed with keeping up with the daily outrages perpetrated on ordinary folks, i have obviously been aware that the catfood commission was recommending cutting out the mortgage interest deduction along with the unconscionable trimming of social security benefits and raising the retirement age (particularly when social security has absolutely NO connection to the budget deficit)... but, until my son brought it up in an email yesterday, i hadn't made the connection that cutting the mortgage interest deduction might actually accelerate the foreclosure crisis and speed up those sitting on the fence about walking away from underwater mortgages... i had emailed him about the pay freeze for federal workers (he and his wife are both government employees)... here's what he said...

I’m terrified about the bigger cuts that are proposed. Freezing the pay tables saves about 60 billion over the next 10 years. That is small potatoes to the 400 billion (doing away with Mortgage interest rate deduction) or the 3 trillion (middle class tax cuts possible expiring soon) Obama’s budget panel has proposed. If stuff like that occurs we will have no choice but to walk away from the mortgage on the house and who know what else.

personally, i think we're in the middle of the biggest heist in world history... the enormously rich get enormously richer and us poor bastards who actually have to WORK for a living continue to get screwed...

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