Thanks for posting that interesting article mayasako.

I agree with hipmatt. Americans will just walk away from their homes and keep on consuming… That will save the economy but kill housing. Consumers will cut back but not enough to kill consumer spending.

I’ve seen enough broke people spend like crazy to know that Americans view certain things as basic necessities of life — cable TV, Tivo, movies on weekends, a newer car, new clothes, beer, soda, and of course everything that their kids clamour for. They’ll move down housing wise rather than go without.

One example that I could point to is that people would rather go without teeth (dental care) than beer or cigarettes. I’m not too worried about the consumer economy.