Sheeple will spend until they exhaust all their savings and max out all their lines of credit. At that point, if there’s any way possible, they will refinance their debt to push the day of reckoning off further into the future (and make it worse when it comes). I personally know of a number of families that have gone bankrupt or came close to it seemingly out of the blue when all appearances showed that they were in fat city. I know of others that have refinanced all of their debt into interest-only mortgages with fixed rates for 1-2 years, with the belief that things are going nowhere but up. This economic downturn will be a “slow motion train wreck”, with people in the last few cars not feeling the crash for a couple more years. Ten years from now, people will look back on this time period and say “how come no-one saw it coming?”