Originally Posted by FIRE'd@51
Back in the oil bust of the 80's, I seem to recall reading articles about large numbers of folks in the Houston area, buying new homes across town (at lower prices) and getting a mortgage, then simply walking away from their old houses and letting the bank take them. They bought the new homes and took out the mortgages before their credit ratings deteriorated.
Look at the Cramer rant posted on another thread. It's a manic rant, but Cramer says 14M Americans got iffy mortgages in the last three years. If the economy tanks, this could be a worse bloodbath than in the 80s.
That Houston bust in the 80s also coincided with the rumor that NASA was going to pull up and move to Colorado Springs. That, in turn, fueled the wild land speculation in the Springs that petered out and sent the local market into a nosedive.