Friday, July 9, 2010

The rich are different: they are more ruthless

When does it start being OK to use that phrase that is such a taboo in America - "class warfare"? When does it start being OK to hate the rich? For that matter, when does it start being OK to eat the rich? (bonus points for the clever persons who get the reference...)

Whether it is their residence, a second home or a house bought as an investment, the rich have stopped paying the mortgage at a rate that greatly exceeds the rest of the population.
More than one in seven homeowners with loans in excess of a million dollars are seriously delinquent, according to data compiled for The New York Times by the real estate analytics firm CoreLogic.
By contrast, homeowners with less lavish housing are much more likely to keep writing checks to their lender. About one in 12 mortgages below the million-dollar mark is delinquent.
Though it is hard to prove, the CoreLogic data suggest that many of the well-to-do are purposely dumping their financially draining properties, just as they would any sour investment.
"The rich are different: they are more ruthless," said Sam Khater, CoreLogic's senior economist.

No comments: