More bursting bubbles

From Megan McCardle who, if you get the end, seems to worry about the consequences of government inaction in the U.S. as well as in Ireland.

the looming Mortgage War will pit recent house buyers against the majority of families who feel they worked hard and made sacrifices to pay off their mortgages, or else decided not to buy during the bubble, and who think those with mortgages should be made to pay them off. Any relief to struggling mortgage-holders will come not out of bank profits – there is no longer any such thing – but from the pockets of other taxpayers.

Sounds a lot to me like the Savings and Loan crisis in the Reagan years.