Shock, I see your points, but how do you figure that the "little guy" is not at least partially responsible? They are the ones who went out and purchased a house that was way beyond their means--and the idiots at the banks were the ones that loaned it! IMO, it's a lot like people who go out and max out a credit card, then apply for another one and max it out, and another, and another--then file for bankruptcy! It shouldn't be allowed, and I'm glad the laws on filing for bankruptcy have been toughened.
>>>>When a private "hard working taxpayers" investment goes sour--he can't just go bankrupt & walk away!!<<<
Since when can't he just walk away? That's exactly what is happening here (I'm assuming you are referring to a house as his "investment")--the ones who can't make the payments are defaulting and walking away, sticking us w/ the bill.