Quote from AAAintheBeltway:
I think the idea that the government is intervening and leaning on banks to forgive a portion of the principle of people who are in default, but no one else, will be enormously unpopular. Most voters will see it as rewarding the irresponsible at the expense of those who sacrificed to pay their bills.
Provided of course, the republicans can actually make that argument, which is doubtful. They are too timid and afraid of being labelled "mean" by the media.
The other objection is that the democrats are forcing this through under the guise of litigation instead of actually passing legislation. This is a tactic liberals abuse routinely to get things they couldn't get through the democratic process.
not to mention the portion of "forgiveness" will amount to approximately $2000 per family, if figures in the blogs are any indication. oh yeah, big bank for the buck. then piss everyone who is fiscally responsible off even more.

