The website You Walk Away posted some amazing information this week after studying the baby boomer portion of those that have walked away from their home (strategically defaulted after their home mortgage moved underwater). The first chart shows that 53% of those that walked away were in the 50 to 69 age bracket.
48% of the baby boomers polled depleted a good portion or all of their life savings before walking away. This number is so horrific I almost do not even want to think about it. It is terrible to think that people still feel there is something morally wrong from walking away from a loan owned by our current banking system.
People think that someone who owns a bank has worked hard to save those thousands of dollars that they had the decency to lend to them to make that home purchase. What they do not understand is that the money did not exist before the loan was made. Money is lent into existence under our current monetary structure. When someone signs for a loan or swipes their credit card, that money is created as a ledger on a balance sheet. Then that ledger begins collecting interest.
On some subconscious level I feel that people are moving closer and closer to understanding that our currency has no tangible value. Why do I think this? Because after depleting their savings to make payments to a bank, and thus destroying their life, 97% of those that finally walked away said they would recommend a family member walk away (except much sooner).
For those that need a primer on modern money mechanics, a topic discussed here numerous times that has hopefully changed the way most readers view the world (what they are working for, how to invest, etc.), the following video will provide a brief primer.
For more on this subject and how it applies to where we are today see:
Michael Maloney Discusses The Currency System
Michael Maloney: Why Gold?