American consumers have been taught by masters.
As Jon H at Balloon Juice observed:
[P]eople are starting to adopt business ethics. Dump non-performing assets for the good of the ‘stockholders’.Mike Shedlock at Mish’s Global Economic Trend Analysis makes the same point.
I think business has been able to use peoples’ moral sense against them for quite a long time, counting on people to do things that are not strictly in their interest rather than doing the coldly rational thing which carries some stigma but is perfectly rational.”
If banks can make "business decisions" to ignore risks, to lend money with no down payment, and fire people [at] the first sign of trouble without any remorse, why shouldn't consumers be able to do the same?My guess: No.
Take a look at previous values on homes now being auctioned. Did not lenders make a business decision to ignore insane valuations placed on those homes?
Indeed they did, and one reason was they could securitize the garbage and sell it to pension plans and foreign investors as far away as Norway (see Citibank SIVs Hit Norway Townships). Is Citigroup about to refund Norway townships for the mess it created?