It’s great to see my friend Christian Menegatti quoted in a front-page NYT article. But what will his wife think?
Christian Menegatti, lead analyst at RGE Monitor, said the firm predicted more homeowners would walk away from their homes if prices continued to drop, regardless of their financial circumstances. If home prices drop an additional 10 percent, Mr. Menegatti said, 20 million households will owe more than the value of their homes.
“Will everyone walk out?” he said. “No. But there’s been a cultural shift. Buying a house used to be like entering a marriage, a commitment for life. Now, if you see something better, you go back into the dating market.”
Jingle mail seems to be in the air; the WSJ has a long article on the subject too. As ever, the most intelligent discussion can be found at Calculated Risk.