American Dream 2: Default, Then Rent

This article in the Wall Street Journal points out the blessing in disguise that this mortgage crisis has brought about. From the dream of owning their houses, Americans have moved on to another alternative, renting houses, which makes more of an economical sense but at the same time providing them with more luxury and money to spend.

As pointed out by some analysts, this is a good thing for the American economy as renting apartments and houses leaves the Americans with more discretionary income to fuel consumer spending which is the backbone of American economy. Money that was used to pay off mortgage debts is now going to be used to pay rents for even more luxurious houses leaving enough to invest, save or spend. The latter seems the most attractive to people who wish for the economy to come back as soon as possible.

Fort many American families, the American dream is now a rental, a luxurious one.