For a while, it seemed that the real estate crisis was hitting mainly the lower- to middle-classes. An element of snobbery could be detected in the conversation. Many made the point that people who took out sub-prime and other loans were not too smart and should have been aware of the big looming balloon payments and negative amortization and all of the other unsavory practices. But the fact is that the well-off are now being hit as well.

The New York Times notes that "whether it is their residence, a second home or a house bought as an investment, the rich have stopped paying the mortgage at a rate that greatly exceeds the rest of the population." An analysis of data from CoreLogic has prompted the paper to suggest that "many of the well-to-do are purposely dumping their financially draining properties, just as they would any sour investment."

This is not something anyone--even the rich--is proud of. Some homeowners are in denial, staying as long as they can. But some wonder if, by treating their homes as just another investment, they will increasingly begin to strategically default. You cannot deny the hard logic, and Fannie Mae and Freddie Mac, among others, seem to be girding for a wave. We'll just have to wait and see.

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- here's the article

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