Michael Shedlock had an interesting article on Seeking Alpha about the so-called Mortgage Forgiveness Debt Relief Act of 2007. And yes, just think about the message our fearless leaders are sending out there.

It’s worth a quick read to get you up to speed on what has been lobbied to help consumers indebted with mortgages that didn’t suit them. The gist is simple, Congress passed legislation that provides relief to families by permanently excluding debt from tax liability. In other words, if you walk out from a short sale or a foreclosure and your lender forgoes $100,000, the IRS won’t see it as income. That’s the good, the bad I expect will be people who are not in a financially tight spot to take advantage of this and put a greater burden on the economy.

Here is another post with more on the subject.