Jeff Goldsmith on NYTimes Says Rich Leading Mortgage Defaults

This morning’s New York Times confirms what I’ve long suspected, looking at default rates in the fabled Silicon Valley.   Wealthy people default on their underwater mortgages more than their less fortunate brethren. This does not surprise, particularly in California, where appearing wealthy is a big part of the zeitgeist.  California’s debt laden culture encouraged people to buy more home than they could afford.  And when “wealthy” people run out of cash, they bolt faster, perhaps because they could see the bottom of the proverbial swimming pool coming.    The Times article has a great line, paraphrasing F. Scott Fitzgerald, “The rich are different; they are more ruthless”.  

Where did they go when they mailed in the keys?  Well, they probably just moved in with their kids!  Just kidding …