12-22-2008, 01:32 AM
There's been little incentive to save over the last decade or so.
Americans responded logically to the incentives they were presented.
Earn 3% annually in a taxable account.
Or buy the bigger house, use it as an ATM for consumer toys, and walk away if the mortgage adjusts upward (or your home's value drops below the mortgage balance)
There is less and less creditors can do about borrowers who are unable or simply unwilling to service their debts.
Most credit card companies are about to find out just what the word "unsecured" means.
Americans responded logically to the incentives they were presented.
Earn 3% annually in a taxable account.
Or buy the bigger house, use it as an ATM for consumer toys, and walk away if the mortgage adjusts upward (or your home's value drops below the mortgage balance)
There is less and less creditors can do about borrowers who are unable or simply unwilling to service their debts.
Most credit card companies are about to find out just what the word "unsecured" means.