Wednesday, February 22, 2012

The Coming Middle-Class Anarchy

True story: A retired couple I know, Brian and Ilsa, own a home in the Southwest. It’s a pretty house, right on the manicured golf course of their gated community (they’re crazy about golf).

The only problem is, they bought the house near the top of the market in 2005, and now find themselves underwater.

They’ve never missed a mortgage payment—Brian and Ilsa are the kind upright, not to say uptight 60-ish white semi-upper-middle-class couple who follow every rule, fill out every form, comply with every norm. In short, they are the backbone of America.

Even after the Global Financial Crisis had seriously hurt their retirement nest egg—and therefore their monthly income—and even fully aware that they would probably not live to see their house regain the value it has lost since they bought it, they kept up the mortgage payments. The idea of them strategically defaulting is as absurd as them sprouting wings. Read more........


  1. I have also said Fuckit. I don't pay credit cards and have defaulted on all cards. They take me to court to find out they sold my debt. I start asking where is my paperwork. They have no paper trail. I win the law suit with prejudice once I show how the interest scam is rigged and prove they violated loansharking-Rico act.

  2. I would assume going in the couple found the mortgage an acceptable trade for the lifestyle they wanted. Now that the paper value of the home has dropped they want a bailout. Why, were they planning on flipping the place for a huge profit down the road? I thought they wanted a golf course home, which they have.

    Sounds like they are all about Private Gain at Public Risk. Shall we start demanding refunds for losing lotto tickets? Do explain how that would be any differnt?

  3. We had the same mess. We were fortunate enough to do a "buy and fly". Bought a lesser expensive house, moved in and told the bank they could have the old house and the mortgage that went with it. Credit scores went down a little and we did not have to worry about it anyway. Going to stop payment on credit cards next and am prepared to do cash transactions for a few years. Screw the banks.


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