Barry Ritholtz commented recently on the not-surprising rise in credit card and mortgage defaults as the US economy heads south. Humorously, he figures that people will default on their credit cards to avoid defaulting on their mortgages, while the Financial Times has it the other way around.

Regardless of who's right, it gets me wondering about a 3rd factor. This economic cycle has been odd for its utter lack of wage growth. Generally, macro economics types pin this on the deflationary effects of globalization. I think that's generally true, but I wonder if the easy credit (and the skyrocketing house prices it fueled) is what's kept people from complaining. With the housing bubble popping, I can't help but notice more comments at work about the lack of raises in recent years...