The Ultimate Moral Hazard: 70% of Greek Mortgages Are In Default

Just as we warned earlier in the year, total uncertainty about the future of Greece has enabled a growing sense of moral hazard as “if the nation doesn’t pay its debt, why should we” sweeps across the troubled nation. As Greeks’ tax remittances to the government, which were almost non-existent to begin with, have ground to a halt, so The FT reports, so-called ‘strategic defaults’ have become a way of life among Greece’s formerly affluent middle-class…“I still owe money on the car and motorboat I can’t afford to use. Even a holiday loan I’d forgotten about…I’m living with my mother looking for work and waiting for the bank to come up with another restructuring offer.”
As we detailed earlier this year, it appears taxpayers everywhere are learning from the best: their insolvent governments. In this case, Greek (non) taxpayers have decided to slow down their mandatory remittances to the government even more because the government may just not exist in two short weeks:

This post was published at Zero Hedge on 06/23/2015.