All those rich people shouldn't have taken out mortgages they couldn't afford
Luxury homeowners are falling behind on mortgage payments at the fastest pace in more than 15 years, a sign the U.S. financial crisis that began with the poorest Americans has reached the wealthiest.
About 2.57 percent of prime borrowers who took out jumbo loans last year were at least 60 days delinquent, a percentage reached within 10 months and the fastest since at least 1992, according to LPS Applied Analytics, a mortgage data service in Jacksonville, Florida. That’s almost twice as quickly as 2007 and a level 2006 owners haven’t attained after almost three years.
The jump in late payments on jumbo loans, while still lower than the 20 percent delinquencies in subprime mortgages, signals that the borrowers with the most money and the best credit are hurting as the U.S. recession deepens in its second year. It also means these loans will be even more difficult to obtain and more expensive to pay off.
How much you want to bet that "shared sacrifice" won't apply to these guys, and that, very quietly, a way will be found to rescue them?
Although, given the way the guys in these houses have been running the country for the last few decades, perhaps "betting" isn't the word that I want.
NOTE Whaddaya know, in Scotland golf is off, too. I'm sorry for people cutting the fairways and working the hotels, but I don't have a whole lot of pity for the Abramoffs of this world who frequented the courses.