In society, we have grown uncomfortable with calling out those who don’t live up to expectations. That has a lot of ramifications. Right now, it is most visible in our willingness to help out institutions whose products have not kept up with the expectations of consumers in the marketplace.

Do we want banks and thrifts to be measured by these new, lower standards?

Lending in America has been schizophrenic. The regulated part of the financial industry, banks, has by and large made responsible loans that enable communities to thrive. The unregulated part of the industry, independent mortgage companies financed by Wall Street, has issued reckless loans that have plunged this country into the most severe recession since the Great Depression.

Government efforts over the past 2 years have focused solely on the market and rescuing our financial services system. While I happen to be one of those community advocates who think letting the banks fail was not an option, I believe strongly that letting homeowners fail was also not an option.

But fail they have, by the millions, with 10-13 million more households in jeopardy, further insuring a worsening recession for our nations future.