A new respect for debt?

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Good morning. Consider this item a sandwich made of Thanksgiving leftovers.

The meat: David Lazarus provides the protein here with a thoughtful column in today’s paper, reporting that holiday shoppers seem to have a new respect for debt this year: ‘... anecdotal evidence suggests that, after years of putting everything they desired on plastic, some people finally may be getting smarter about their finances. And many, though they may not be conscious of it, seem to have a gut feeling that the economy is going to keep heading south.’

The stuffing: Commenter Rich succinctly explains how massive debt became a kind of comfort food to homebuyers during the bubble: ‘If you’re a good student of human nature, it will be clear that the psychology behind taking on high mortgage debt is a feeling of comfort that borrowers had when they looked around and saw so many others like themselves successfully being granted such large loans....’ There’s nothing comforting, however, about falling home prices and rising foreclosures.

The cranberry sauce: Commenters arroyogrande and yourkillingmelarry see the dark humor in all of this, and recommend a classic piece of debt humor: This Saturday Night Live skit from earlier this year featuring Steve Martin, and revealing the secret of debt management: ‘Don’t Buy Stuff You Cannot Afford.’

The apple pie: Expect to see more coverage of shifting attitudes toward debt. Old attitude: debt is a wonderful opportunity to build wealth by investing in real estate. New attitude: debt carries risks and burdens. Read the fine print.

Your thoughts? Comments? Insights? Email story tips to lalandblog@yahoo.com.
Photo Credit: L.A. Times