The U.S. recession has been nearly forgotten
By Daniel at 13 October, 2008, 10:30 am
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We are still in a “false economy”.As more and more people stop making mortgage payments but still live in those houses they have extra cash to spend.My wifes coworker has stopped paying a $2,500 mortgage.She still works and simply stopped due to being way upside down and has given up.Some want a rework or bailout.Others will just eventually walk away.In the meantime those families have $2,500 or more a month to spend.
Others took the helocs they had before they were cut.Put the money in savings or other places before they lost the heloc.Some also spent those helocs on vacation homes,cars boats and other toys.
The other is those with good credit that continue to charge and live way beyond thier means.
It will all come crashing down and no help from the Government is going to solve a problem any time soon when it took over a decade to get where we are.
Free money and easy credit, along with greed have caused this and no magic bullet will save it overnight.
2008 and 2009 are going to be very rough years.
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