Hazard of Happiness

The landlord say your rent is late
He may have to litigate
Don't worry, be happy
--Bobby McFerrin

With recent increases in consumer spending, an interesting question is how much of the spending uptick comes from 'strategic defaults'--i.e., people who have elected not to pay their mortgages because they are upside down or, perhaps because they see their neighbors getting rewarded for not paying their mortgages. This frees up funds for discretionary spending.

Data that support this proposition include increasing revolving credit and retail sales in the face of declining home prices, mortgage delinquencies, and foreclosures.

Perhaps the thinking is, 'Since the government has my back, I might as well spend some more...'