It's amazing how many "educated" people have no clue how to balance their own budget. Does it ever occur to them that expenses are no different than they ever were, they are just buying more than they can afford?
If it hasn't, it soon will. And the lesson will be learned the hard way.
Many just do not have the concept of money or debt. They see the gov't borrowing, borrowing, borrowing trillions of dollars and going back to the well when they need even more. They see companies run up billions in debt only to wake up some day to see those companies have filed bankruptcy, yet still go on conducting business in their "merry old ways".
Many think they can do the same thing by taking out all equity in there homestead, signing and returning $10,000 credit card offers and taking delivery of those $40,000 automobile.
There are a whole bunch of folks that have never seen a 'real recession', i.e. 1979 and don't realize that if you can't make the notes, you lose what you have.
I'm afraid that the real estate bubble is about to be pricked, when foreclosures flood the market.