Jan 30 2010
Strategic Default and Walk Away from that Albatross of a Mortgage – Strategic Default increased by 68 Times from 2005 to 2008 in California. The Economic Psychology of Walking Away and is a 200 Point Drop in Your Credit Score Worth Holding Onto a Property?
As the stigma wears away and more Americans find themselves with unmanageable housing payments, many are making the conscious decision to walk away from their mortgage. What occurs in a walk away, as opposed to a standard foreclosure, is the borrower is making a business decision to stop making their housing payment. Now this compares [...]
Jan 25 2010
Savings and Deposits and the Zero Percent Bank Account – Punishing the Saver for a Nation Fueled by Debt Consumption.
The current financial system is designed to punish savers. The Federal Reserve by cutting the Fed funds rate to virtually zero has made it a disincentive for people to store any of their wealth and get any acceptable return. If we look at savings account rates you will find that many banks are offering from [...]