Why shouldn’t someone walk away from overbearing consumer, student or mortgage debt, so long as it is non-recourse? I can’t think of any reason to keep servicing debt if you have no hope of repaying the principal. What good is a high FICO score if you don’t want to run up another credit card balance or buy a home? Yes, landlords run credit checks, but it is getting harder and harder to fill vacancies, and this is what deposits are for anyway.
The “just walk away” attitude is gaining traction. It could snowball into next year as yet more mortgages reset and U-3 unemployment enters the double digits. What can the legal system do if tens of millions of people decide to stop paying their unsecured loans? This lady is right — there is safety in numbers and government inefficiency. You get a fresh start in five years anyway, which should be right around the time real estate has a chance of recovering.
This is exactly what needs to happen. The unpayable debt will by definition be defaulted on, so the sooner the better. The banks that issued it need to go under. Stories like this are refreshing, because we need to clear the air.
Yeah! More and more I am hearing the same thing. A few weeks ago when I was visting in a typical place that represents the heartland of America … Hickory, NC …. people were talking to me about a TAX Revolt! They were also talking to me about maximizing business exprenses i.e. taking more risk with business deductions and basically deducting everything. Truly, this land will become a land of HAVE’s or HAVE NOT’s …. there will be no Middle Class … jsut POOR or RICH …. and honestly, this is just getting started … American’s … the true ones … are extremely bold .. like hte ones who faught against all odds in Pearl Harbor etc … and now, those times are upon …. a Revolt is sure to happen ….
Heck, I was shopping in a really rich neighbourhood in a RITE Aid … and I found out that all kinds of people have been caught stealing … young, middle, old of all colors … not just Latino, Hispanic, Black … not in tatters … it was shocking …
*uck the BANKS! Them in their greedy Harvard / Wharton educated elitist Quant MOFO MBA’s are the cause of this ….
The banksters have gang raped the US taxpayers (the unwashed masses). The lack of anger towards the banksters amazes me. I hope the message in this video spreads far and wide. Our government has been hijacked by large corporations and the little people have been bent over repeatedly.
Another great interview of Robert Prechter: http://realitylenses.blogspot.com/2009/09/robert-prechter-hour-interview-on.html
Yes, that was an excellent interview, about an hour long, in which he was able to talk in depth about all kinds of things. Direct link here:
http://www.financialsense.com/Experts/2009/Prechter.html
Yes, he gets to explain a lot of things regarding deflation.
I particularly appreciated the fact that he explains that the Fed is not just loading crap assets on their balance sheet.
But then again, let’s see if he is right or not on his analysis. He forecasted a major rally in the USD a couple of weeks ago, calling a major bottom. But that bottom has been breached now… and the reverse for gold, for now.
Also, I saw that Karl Denninger is forecasting S&P 500 at 200, even lower than your and mine objectives!
He’s calling a major bottom, not a 2-week bottom. Big turns take time to play out, and there is nothing about the dollar action lately that would temper that outlook.
Denninger has been saying 200 for a while. Pej, I don’t know what you mean about my target. I have said many times that 200 is totally reasonable. 100 is possible, and would not be outside the realm of historic valuations. 350 is likely. 450 is very likely.
I kind of remember previous chats where we were both kind of targeting a decline of 80 to 90%.
Wait & See, I’ve started loading some puts on the S&P now…
http://newsfrom1930.blogspot.com
Same Sh*t, Different Day.
Really cool Daedal, I love the concept.
Thanks for sharing
If everyone is optimistic then why are treasury bonds rallying? I think investor opinion is split and this is reflected in the contradictory signals from the stock and bond markets.