powayseller predicted 50% default on those ARMs?
If owners walk like Cramer recommended they do, then we might just see 50% default rates 2/28.
I personally predited that people would walk from their houses rather than cut back and live on bread and water. Of course, they’ll keep the cars and credit cars and drop the house.
I think that economy is resilient and while we’ll get a general recession, the consumer will keep on spending throughout the housing depression. The consumer is an addict. He’ll cut back a little but he really can’t stop from buying junk.
I see the families shopping at Walmart and to them, buying junk is a feel good exercise. Buying plastic tubs, clothes and shoes made in China in affordable entertainment and luxury for them.
I didn’t used to believe in the affordable luxury concept but Starbucks proved me wrong.