I concur with above statements and know a few people that are living that very reality. They haven’t made a mortgage payment in months, some by choice.

As time passes without any repurcussions they grow increasing comfortable with the situation.

– New Car…Yup
– Travel…Yup
– shopping…Yup

Not much saving if at all.

The one odd commonality of the group in question, is the belief that the general health of the economy is improving and that local housing prices will be approaching the heights momentarily.

A complete disregard for reality. When presented with facts they’ll even tend to agree with all points however there is always a, “yeah but” response usually along the lines of California being special or some other delusion.

I don’t know what the term is but, is goes beyond denial. It’s some sort of mania. I’m sure there will be term coined to describe it in the history books.