Defaulting on your mortgage

The greedy goblin (which is a blog mainly about World of Warcraft) also gives out economics advice.  Today's was indeed special:

http://greedygoblin.blogspot.com/2010/01/walk-away.html

Basically if you owe more than your house is worth, stop paying the mortgage and walk away.

Which on the surface looks socially irresponsible because it would lead to wider poverty and we are told as a species we need to work together...

However after reading the whole thing it lead me to think that those that did act irresponsible were the bankers and they are the ones that are living the high life...hummmmm

The article makes a point that if you were in negative equity of 100k and you pay that off, you are feeding the bankers.  If you walk away you save yourself the cost of 100k loan.

I personally am not in negative equity so cannot pull this trick off but it did get me thinking about moral obligations and is our sense of duty wrong?

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