Words of Wisdom from Robert Shiller

Strategic default on mortgages will grow substantially over the next
year, among prime borrowers, and become identified as a serious
problem. The sense that ‘everyone is doing it’ is already growing, and
will continue to grow, to the detriment of mortgage holders. It will
grow because of a building backlash against the financial sector,
growing populist rhetoric and a declining sense of community with the
business world. Some people will take another look at their mortgage
contract, and note that nowhere did they swear on the bible that they
would repay.

From the WSJ's Real Time Economics.


Comments for this post are closed