Well the question is how much of the debt is going to be defaulted.
10%? 50%? 100%? Nobody knows. I sure would like to hear an educated guess, though.
I think the real fallout of this is we are going to see the evaporation of what I like to call the “faux riche'”. These are the middle-income folks that having been living the high life on home equity loans and credit cards. I see this entire social class being taken to cleaners.
Which I don’t really have a problem with.
I don’t see this as a collapse. I see it as a correction where the average American will be forced to live within their means. We will still enjoy a higher standard of living than the majority of the world.
