Americans Buy IPads While Broke in New Abnormal Economy

Are those that pay their mortgage and live within their financial means the greater fools than those that live without constraints? In the upside-down world of free money and blind risk assessment it would appear so. Even after someone walks away from their debt obligation, a practice becoming more socially acceptable, there's no shame in further recreational consumption. People do this because there is a perception that their actions have no consequences. Strategic walk-a-ways from the mortgages and excessive consumption carries no discernable price. Stick it to the bankers, right?

Unfortunately, it does carry a hidden price tag. The burden of mortgage defaults and excessive consumption is carried by all Americans through currency debasement. Currency debasement is and will continue to be used to minimize the effects of failing debt created during the previous expansion. The bankers know it, and will be protecting themselves at the expense of the public.

The more he thought about the money he was losing, the more it stressed him out. Finally, Ronzio enlisted the help of a firm called You Walk Away and did exactly that from the remaining $319,000 on his condo mortgage. When the bank foreclosed, he says he felt a sense of relief. He also had more cash. He and his fiancée took the kids to Disneyland. Ronzio, 31, gave himself a treat as well.

Source: bloomberg.com