Thoughts on the loan crisis…

Specifically the post about the Americans walking away from their loans.  I thought I’d get some comments on that one.  I’m struggling with that whole idea a bit, because while I see the logic behind it (why should I keep paying for something that won’t be worth nearly what it’s mortgaged for until probably 2010 or longer?) it disgusts me that people have no qualms about walking away from their responsibilities!  I just read about someone the other day who lived in a house they bought for $800,000, no money down, in 2005.  The house across the street from him just came up for sale – bank owned, and only $500,000.  He plans to buy it and then walk away from his old house/loan.  Voila!  He’s now wiped away $300,000 of debt leaving the original bank high and dry.  I am sure we’ll see more and more of this as time goes on.  Thoughts?  Do you think that, as the previous article stated, that people walking from their homes will become a socially accepted norm?  The guy in my previous example who walked from his home, thereby cutting his debt substantially isn’t technically doing anything illegal.  It’s fraudulent to be sure, but he isn’t really breaking any laws really.  There are no laws against being foreclosed on.  What should his punishment be, if anything?