In response to our question, "Did the Housing Bust Fuel the Consumer Spending Binge?" Taipan Daily reader Mike writes:
Just a quick additional thought on the [consumer spending binge piece]. California actually encourages strategic default. Homeowners in California are not personally liable... So, if the house is worth only 50 or 60 percent of the amount of the mortgage, which is not uncommon, the owner just walks away. I know a couple of people who've done this. What is surprising is that more people haven't done this. Of course, it eventually kills your credit rating.
