Normally, they are just digging a hole for themselves when the damage or take things because the devalued home just means more that he owes the bank.

They were originally created as a way to keep out the "undesireables" by passing regulations to discourage anyone or anything that they the ORIGINAL landowners thought would "devalue" their assets before they could sell them for the great profit that they expected.

I'm sure the value has gone down some, but this was an entry level price, so didn't devalue much in last 3 years.

Wait till it's devalued to the point where paying back the loan is effectively a short sale.

Then let inflation come and pay back today's loans with devalued future dollars.

Especially bad is when consumer good prices rise with capitalized assets devaluing, which is knid of where we are.

he will have to eventually, probably in the next 2-3 years at the latest. we have a Balloon Payment as a country coming up and the only way to stop it is through high interest rates, or a heavy devaluation of the Dollar.

Maybe you could argue we'll stay in this low rate environment for the next 5 years, but in 10 - with all of the money thats been pumped into the system and the government's apparent goal of devaluing the dollar I think interest rates will begin upwards sooner and more briskly than you might imagine (especially considering the multi decade lows they are at now).

At one time your account was supposed to be protected up to $100K now due to the devaluation of the US Dollar - they have changed the value to $250K.

Devaluation has already occurred in the now-factual doubling of the base currency, though its "formal" effect is staved off by fear in gov'ts outside our borders as well as inside our borders.