Why should underwater homeowners behave any differently from banks?

October 25, 2011 Program helps "underwater" homeowners refinanceWASHINGTON - Rep. Debbie Wasserman Schultz (FL-20) commended the President's announcement this week to help struggling homeowners across the country.

The Obama Administration authorized several refinance programs aimed at helping underwater homeowners take advantage of the historically low interest rates.

Push for a major principal reduction plan for underwater homeowners, such as modifications in coordination with Chapter 13 bankruptcy filings.

And bailing out underwater homeowners on the scale necessary to raise house prices would have been a huge logistical and political challenge.

Ask an "underwater" American homeowner with a $350,000 mortgage and a $250,000 house.

Click here to read more about Rep. Eshoo's housing plan to help underwater homeowners and foreclosed upon homeowners.

Housing prices fall while the mortgage obligations remain fixed, leading to "underwater" homeowners unable to consume at sufficient levels to drive economic growth.

Tell this to all the underwater "homeowners", ehm, homedebtors who were buying with other people's money.