Strategic Default: Part 2 of 3

The term “strategic default” has been in the news. With 25% of American homes valued at less than the balance of the mortgage, and some of those “underwater” mortgage holders out of work it’s no wonder.

For those who can’t stay up late enough to watch Stephen Colbert, here’s a video clip on this subject. After he talks about the bankers testifying on Capitol Hill, he gets to The Word: “Honor Bound,” which refers to the social pressure mortgage owners feel to pay their mortgage because they gave their word to do so.

Lines like this are classic Colbert: “A mortgage is a sacred obligation, right fully-employed TV commentators?”