Has your home lost value? Do you think that banks are "just as scared as you?"

[Nuclear Unicorn]

5. Romney's statement was tin-eared and oafish but essentially correct

The banks want your home to have value. Until the mortgage is paid-off they still own it and it is considered asset. Their cumulative assets (deposits, mortgages, etc) allow them to do things. If they lack assets they have less working capital as they must maintain reserves. That means fewer business loans, fewer new mortgages, lower returns on deposits. That reverberates to their ability to attract customers. Nobody wants a bank that cannot provide services because its under capitalized. CEO bonuses notwithstanding workers, consumers, homeowners and businesses all rely on banks and banks rely on them. Banks want their customers to profit because those profits get put into -- BANKS.

Still, for someone reportedly as slick as Romney he sure did flub a soundbite. I was hoping Gingrinch would be the nominee since he would be an unending font of verbal missteps, poorly framed arguments and outright obnoxious buffoonery. I was worried Romney would be too rhetorically polished. This OP makes me feel better.