Re: US homes as ATM's redux

[Michael Perelman <michael@xxxxxxxxxxxxxxxxx>]

One point hinted to in the article is the evolution of the attitude toward debt.  US
business worked hard, especially beginning in the 1920s, to remove the stigma associated
with debt.  Previously debt was considered to be avoided, except for houses and products
associated with virtuous activities, such as pianos.

As the older people, who still have some resistance to taking on more debt, expire and are
replaced with a more exuberant younger generation, the problem will become even more
complicated.

The reliance on debt to fuel the economy did not begin with the housing boom.

I wonder what the collision between the accumulation of debt and the new bankruptcy law
will be.  We might get a hint in November, when the minimum payments will be going up.



--
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu