Underwater Mortgage Madness

I listen to the news each day and hear about the millions of Americans that are 'underwater' with their mortgages. What responsibility do these folks have for their situation?

How many took out home equity loans and used the money to buy jet skis, cars, etc.? How many took out money and paid for vacations and education?

How many just lost without taking out any equity?

What of those folks that trust that the market will recover at some point?

Is it fair that taxpayers should have to continue to take the hit for these bad deals and equity spending?

Should these folks get a reduction?

What if someone took out equity money and bought a second home for cash? Now, they're going back and looking for a reduction. What have they really lost? In my mind, this was just an equity transfer. They took the money from one home and used it to buy a second home at a bargain price. Now, they're looking for a reduction on their first home, that for some reason is now underwater. If you added the value of both homes together, would it be greater than the mortgage on the first?

Why should folks who've done this get a 'reduction'? Anyone looking to see where the money went? If they just borrowed the money and bought jet skis, would anyone let them off the hook?

Underwater/Reduction Madness...

How many of those seeking a reduction are actually ahead when you add the value of all their asset purchases together?

just my humble opinions