I’ve been saying that people not paying their mortgage have spendable income. I see it as indirect collateral damage. Whether intentional or not, people’s biggest expense are housing and transportation. If one doesn’t pay their mortgage, that’s a heck of a lot of new clothes and dinners out. Maybe even a new car. Travel is another one.
People generally have not been savers. Certainly interest rates aren’t encouraging it. People in this country consume and spending is what I see most people doing w/their new found income. I heard something like 75% of our economy is from consumer spending.
Not foreclosing on people has helped our economy, at least temporarily. In the end, we will eventually have to reckon w/this.
I guess it’s just another, innovative way of using your home as your ATM.
