The University of Arizona has just published a paper entitled "Underwater and Not Walking Away: Shame, Fear and the Social Management of the Housing Crisis". It is a 54 page beast, but Mish has posted an abstract with commentary on his site. I haven’t read the comment string, but I’m sure they are heated. Some points from the abstract:
– Regional default rates are following unemployment rates more closely than they are following the number of underwater homes.
– "Asymmetry" exists between the interests ot the lenders and the home owners.
– The market didn’t fail, government policy did.
It is all well worth reading, and I love the term "social engineering:" used in this context. Take a look, kick it around a while, and let’s hear about what you think.