Mortgage Defaults May Be Driving Consumer Spending

[Arraya]

http://piggington.com/report_shows_strategic_defaults_increasing
Submitted by Arraya on March 30, 2010 – 1:59pm.
Actually, I think if they lived for free or went out and rented another place, we would still pay. At least this way they can pump more money into the economy and keep people employed. There are between 8-10 million people not paying their mortgage…. That’s gotta help the economy

[jpinpb]

[quote=CA renter]JP,

Weren’t other posters giving us a hard time when we suggested that the economy is benefitting from massive numbers of people who suddenly have no house payments? I’ll have to find that thread…[/quote]

That’s right. I think it was FormerSanDiegan that explained his point of view and I understood it. However, in the immediate sense, money that is being spent into the economy versus their mortgage is keeping the wheels moving.

In any case, I remember saying this a long time ago when someone, I think TG, was mentioning how the economy wasn’t so bad and lines/wait were long at restaurants. I think that was the first time I said something about if one isn’t paying the mortgage, they can afford to go out to dinner.

In the end, we the taxpayers are propping up consumers who are buying things rather than paying their mortgage. Everyone paying taxes, pat yourself on the back!

[jpinpb]

[quote=CA renter]JP,

Weren’t other posters giving us a hard time when we suggested that the economy is benefitting from massive numbers of people who suddenly have no house payments? I’ll have to find that thread…[/quote]

That’s right. I think it was FormerSanDiegan that explained his point of view and I understood it. However, in the immediate sense, money that is being spent into the economy versus their mortgage is keeping the wheels moving.

In any case, I remember saying this a long time ago when someone, I think TG, was mentioning how the economy wasn’t so bad and lines/wait were long at restaurants. I think that was the first time I said something about if one isn’t paying the mortgage, they can afford to go out to dinner.

In the end, we the taxpayers are propping up consumers who are buying things rather than paying their mortgage. Everyone paying taxes, pat yourself on the back!

[jpinpb]

[quote=CA renter]JP,

Weren’t other posters giving us a hard time when we suggested that the economy is benefitting from massive numbers of people who suddenly have no house payments? I’ll have to find that thread…[/quote]

That’s right. I think it was FormerSanDiegan that explained his point of view and I understood it. However, in the immediate sense, money that is being spent into the economy versus their mortgage is keeping the wheels moving.

In any case, I remember saying this a long time ago when someone, I think TG, was mentioning how the economy wasn’t so bad and lines/wait were long at restaurants. I think that was the first time I said something about if one isn’t paying the mortgage, they can afford to go out to dinner.

In the end, we the taxpayers are propping up consumers who are buying things rather than paying their mortgage. Everyone paying taxes, pat yourself on the back!

[jpinpb]

[quote=CA renter]JP,

Weren’t other posters giving us a hard time when we suggested that the economy is benefitting from massive numbers of people who suddenly have no house payments? I’ll have to find that thread…[/quote]

That’s right. I think it was FormerSanDiegan that explained his point of view and I understood it. However, in the immediate sense, money that is being spent into the economy versus their mortgage is keeping the wheels moving.

In any case, I remember saying this a long time ago when someone, I think TG, was mentioning how the economy wasn’t so bad and lines/wait were long at restaurants. I think that was the first time I said something about if one isn’t paying the mortgage, they can afford to go out to dinner.

In the end, we the taxpayers are propping up consumers who are buying things rather than paying their mortgage. Everyone paying taxes, pat yourself on the back!

[jpinpb]

[quote=CA renter]JP,

Weren’t other posters giving us a hard time when we suggested that the economy is benefitting from massive numbers of people who suddenly have no house payments? I’ll have to find that thread…[/quote]

That’s right. I think it was FormerSanDiegan that explained his point of view and I understood it. However, in the immediate sense, money that is being spent into the economy versus their mortgage is keeping the wheels moving.

In any case, I remember saying this a long time ago when someone, I think TG, was mentioning how the economy wasn’t so bad and lines/wait were long at restaurants. I think that was the first time I said something about if one isn’t paying the mortgage, they can afford to go out to dinner.

In the end, we the taxpayers are propping up consumers who are buying things rather than paying their mortgage. Everyone paying taxes, pat yourself on the back!

[poorgradstudent]

I can speak for myself and say that there are purchases and spending I could delay 6 months or a year but can’t put off indefinitely. Low spending generates pent up demand. Non-emergency Car repairs, dental work, new shoes, replacing jeans, and many other expenses fall into the category of essential but not urgent (as opposed to food, gasoline, toilet paper and other urgent expenses). I’m sure most people have put off at least some expenses that have moved from the “essential but not urgent” pile to the “urgent” pile.

Also, consumer sentiment is improving partially because of real improvement in the economy. Things are still pretty crummy, but by all indicators it looks like we bottomed out around January ’10. At this point there really is no where to go but up.

[poorgradstudent]

I can speak for myself and say that there are purchases and spending I could delay 6 months or a year but can’t put off indefinitely. Low spending generates pent up demand. Non-emergency Car repairs, dental work, new shoes, replacing jeans, and many other expenses fall into the category of essential but not urgent (as opposed to food, gasoline, toilet paper and other urgent expenses). I’m sure most people have put off at least some expenses that have moved from the “essential but not urgent” pile to the “urgent” pile.

Also, consumer sentiment is improving partially because of real improvement in the economy. Things are still pretty crummy, but by all indicators it looks like we bottomed out around January ’10. At this point there really is no where to go but up.

[poorgradstudent]

I can speak for myself and say that there are purchases and spending I could delay 6 months or a year but can’t put off indefinitely. Low spending generates pent up demand. Non-emergency Car repairs, dental work, new shoes, replacing jeans, and many other expenses fall into the category of essential but not urgent (as opposed to food, gasoline, toilet paper and other urgent expenses). I’m sure most people have put off at least some expenses that have moved from the “essential but not urgent” pile to the “urgent” pile.

Also, consumer sentiment is improving partially because of real improvement in the economy. Things are still pretty crummy, but by all indicators it looks like we bottomed out around January ’10. At this point there really is no where to go but up.

[poorgradstudent]

I can speak for myself and say that there are purchases and spending I could delay 6 months or a year but can’t put off indefinitely. Low spending generates pent up demand. Non-emergency Car repairs, dental work, new shoes, replacing jeans, and many other expenses fall into the category of essential but not urgent (as opposed to food, gasoline, toilet paper and other urgent expenses). I’m sure most people have put off at least some expenses that have moved from the “essential but not urgent” pile to the “urgent” pile.

Also, consumer sentiment is improving partially because of real improvement in the economy. Things are still pretty crummy, but by all indicators it looks like we bottomed out around January ’10. At this point there really is no where to go but up.

[poorgradstudent]

I can speak for myself and say that there are purchases and spending I could delay 6 months or a year but can’t put off indefinitely. Low spending generates pent up demand. Non-emergency Car repairs, dental work, new shoes, replacing jeans, and many other expenses fall into the category of essential but not urgent (as opposed to food, gasoline, toilet paper and other urgent expenses). I’m sure most people have put off at least some expenses that have moved from the “essential but not urgent” pile to the “urgent” pile.

Also, consumer sentiment is improving partially because of real improvement in the economy. Things are still pretty crummy, but by all indicators it looks like we bottomed out around January ’10. At this point there really is no where to go but up.

[meadandale]

[quote=poorgradstudent]
Also, consumer sentiment is improving partially because of real improvement in the economy. Things are still pretty crummy, but by all indicators it looks like we bottomed out around January ’10. At this point there really is no where to go but up.[/quote]

We still have high unemployment and a looming debt crisis at all levels of government that is being virtually ignored.

Any call of a bottom is extremely premature and certainly qualifies as ‘irrational exuberance’.

[meadandale]

[quote=poorgradstudent]
Also, consumer sentiment is improving partially because of real improvement in the economy. Things are still pretty crummy, but by all indicators it looks like we bottomed out around January ’10. At this point there really is no where to go but up.[/quote]

We still have high unemployment and a looming debt crisis at all levels of government that is being virtually ignored.

Any call of a bottom is extremely premature and certainly qualifies as ‘irrational exuberance’.

[meadandale]

[quote=poorgradstudent]
Also, consumer sentiment is improving partially because of real improvement in the economy. Things are still pretty crummy, but by all indicators it looks like we bottomed out around January ’10. At this point there really is no where to go but up.[/quote]

We still have high unemployment and a looming debt crisis at all levels of government that is being virtually ignored.

Any call of a bottom is extremely premature and certainly qualifies as ‘irrational exuberance’.

[meadandale]

[quote=poorgradstudent]
Also, consumer sentiment is improving partially because of real improvement in the economy. Things are still pretty crummy, but by all indicators it looks like we bottomed out around January ’10. At this point there really is no where to go but up.[/quote]

We still have high unemployment and a looming debt crisis at all levels of government that is being virtually ignored.

Any call of a bottom is extremely premature and certainly qualifies as ‘irrational exuberance’.

[Author]

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