Actually, the rich are worse than us. They’re now the biggest defaulters on home mortgages across America, according to the New York Times.
It’s tempting to snort with delight at their plight. But here’s the problem: These walk-aways are probably tied to 1.) Loss of jobs. 2.) Loss of wealth due to Wall Street’s crash two years ago. 3.) Loss of home values. This isn’t happening because of nasty subprime interest rates and loan teasers—and that’s a big concern. It’s about jobs. Too many people are barely hanging on.
File under: F. Scott Fitzgerald, you were right, to an extent
PS: The $1 million home threshold isn’t necessarily a mark of the truly wealthy. But the story makes its point. These aren’t the working poor, working-class and middle-class who are defaulting.