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is now telling people who "made a bet and lost" to not compound the error, and to simply walk away from the mortgage and default.
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Sensational reporting by this guy is good for his ratings but I doubt many people will be able to walk away from their houses even if the valuations continue to fall.
People still need a roof over their heads and need to weight up the costs and benefits of defaulting and paying rent as opposed to remaining with their home and mortgage.
Walking away will cause people to 'lose their deposits'. Even though the market has already taken many people's deposits, it a near psychologically impossible thing to do - albeit prudent for certiain individuals in specific situations....a point Cramer fails to expand upon.
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What deposit? His advice is aimed at the 100% LTV and neg am borrowers.
J