"It is amazing, stunning and a catastrophe,"says Richard Plaster, founder of Signature Homes who has been warning about the foreclosure problem in Las Vegas growing worse. "At every breakfast or dinner table, there is a discussion going on about 'what are we going to do.' It is going to be hard-pressed on why people should stay in their house. People have no choice if they are rational."

Does that mean it's irrational not to let them foreclose?  It would have been considered crazy just a few years ago. Now, top executives are saying it's the smart thing to do?   Cram downs in Bankruptcy for primary residences, have to be coming.  It's only rational.

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