I believe in the "End of Days" concept for the American Consumer. While I'm not sure exactly what the signs are or what the final sign will be, I can say with certainty that we are managing to leverage every valuable asset we have. When we have run out of things to borrow against, that will be the last sign. Until then, for the American Consumer, these will have to do (and these are pretty darn close to the final act):

The Seven Signs of The Financial Apocalypse of the American Consumer
1) Reverse mortgages
2) Life settlements (for the sellers)
3) Negative am, Alt-A, sub-prime, cash-back mortgages
4) Property tax loans
5) Payday loans
6) Debit cards for your 401K
7) Paying your mortgage with your credit card

I have friends in the property tax lien business. It is huge in Texas. If you cannot pay your property taxes, you can go to a firm that lends you the money at 18% interest over 48 months. They take a lien on your home. In Texas, this lien jumps to the head of the priority line, even jumping in front of your first mortgage holder.

Even people that own $3 million homes are borrowing the $90,000 of property taxes due.

You would think this is almost an entirely risk free investment, as property taxes are about 3% of the value of your home annually. A lender lends 3% of the value of your home to you and pays your taxes for you and they take a first lien.

Know what is slowing this lending practice right now?

The lack of qualified applicants!

Can you imaging? You are so concerned about the borrower paying back your puny 3% loan and worried that the property that you have taken as collateral won't sell that you won't lend 3% against the property. AND you have a first lien?

That, my friends, is truly amazing. And just a weeeee bit concerning.

Our next post will list the Seven Signs of the Financial Apocalypse of our federal government.