Growing Trend Of People Walking Away From Debt
Amazing thread over at Zero Hedge today regarding the idea of purposefully running up debt and walking away from it, telling the banks to come and get it. More Americans are getting frustrated with the oligarchy-like behavior of Wall St and Washington. If the guys in charge don’t play by the rules, why should we?
People walking away from homes is no new thing, but purposefully ratcheting up credit card with no intention to pay is certainly a new development in today’s world of bailouts. I personally am not going to implement this financial strategy in my own life, but I do not blame the people who are so frustrated that they are resorted to these tactics. Heck, if I were single and unemployed, I’d probably consider it too.
The question becomes where does this lead? Well, more losses on banks’ balance sheets have to be recognized one way or another (even with manipulative accounting rules). Most likely, it means more monetization from the Fed which means inflation. Boy, things are sure getting crazy even if the stock market continues to “recover”.
Take this as a reminder to at least own some gold, silver and precious metals. Inflation will come at some point.
