Why is is so hard for people to live within their means? And by that I mean INCOME. Not your housing equity!
People are finding out that their houses are upside down (worth less than the mortgage) and can't borrow anymore.
I guess these people will be the crying when their housing are foreclosing. But buying a new truck because I did not like the color? The article says Anxiety reigns. No Shit Shirlock.
Mr. Whittey once seemed an unlikely member of that cohort. A sales manager at a flooring and tile company, he exudes the unflappable air of someone raised amid the easy money of the casino world. Until recently, he and his wife regularly embarked on shopping sprees of $1,000 and up.
He bought a 21-foot boat and two flat-screen televisions for their home. He sold his old truck and bought a new one, he said, “just ’cause I didn’t like the color.” Mr. Whittey could live in such fashion because his company was making good money and his house was
appreciating.
But today, the value of his own home, which reached $500,000,
has fallen and a separate investment property he bought seems likely to fetch far less than the $580,000 he owes the bank. His commissions have diminished, so his income is down. His neighbor recently fell behind on house payments, prompting the bank to foreclose. Anxiety reigns.
http://www.nytimes.com/2007/11/08/business/08borrow.html?pagewanted=2&_r=1&hp
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