THE MORALS OF THE MARKETPLACE

(Via Atrios) Calculated Risk finds that lenders and investors are worried that some homeowners will act rationally by mailing in the keys on a home that is worth less than they owe on it. This is frequently called being "upside down." I found this amusing:

See these comments from Bank of America CEO Kenneth Lewis via the WSJ: Now, Even Borrowers With Good Credit Pose Risks

"There's been a change in social attitudes toward default," Mr. Lewis says.

I think Mr. Lewis is in for more surprises as people start realizing that Wall Street puts profit above transparency and honesty.