| May 12, 2011 2:06PM Until recently it was generally believed that only a small fraction of Americans would willingly choose to skip their monthly mortgage payment, aka "strategically default", when they found themselves stuck in a negative equity situation. The logic driving this belief was based on the notion that borrowers wouldn't want to damage their credit profile or deal with the social stigma surrounding a public foreclosure. The assumption that most underwater borrowers will continue making their monthly payments... May 12, 2011 10:34AM President Obama was on CBS this morning discussing the state of the U.S. economy. In the Q&A session Obama cited the weak housing market and high gasoline prices as the biggest "headwinds" toward economic growth. Clearly Main Street is already aware of the pressures being exerted on its wallet by rising food and energy costs, Wall Street on the other hand is just now beginning to accept that observation as a legitimate threat. Further evidence of the margin squeeze was presented this morning...
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