Bailout for Seven Jeans and Coach buyers?
Why not? After all, so much of that consumption was financed via HELOCs on bogus "equity" that has disappeared, and now, the bills are coming due and the houses are in danger. 2nd mortgage holders don't have much power, but they're using whatevery they've got to try and stonewall the refi process until they get paid what they're owed. (Dirty, cigar-munching plutocrats!)
Lenders and investors who hold home equity loans are not giving up easily, however. Instead, they are opposing short sales. And some banks holding second liens are also opposing refinancings for first mortgages, a little-used power they have under the law, in an effort to force borrowers to pay down their loans.
Surely we should throw a couple of hundred billion dollars this way to help these poor debtors who, though no fault of their own, find themselves iPod rich, but mortgage-payment poor.