I am not sure if I could find a story to better display the overreaching of American consumerism the past decade. As the theater of the absurd aka the economic good times returning in 6 months continues on, a lot of dichotomy's are emerging. For example, under the government's not yet announced boat for boats clunkers program - $0 down, 0% interest down, to FICO score 620's (and if you lose your job we'll cover the payments for the first year) should soon be announced in the marine market.

It would only be fair to match the auto market. What's that? We have plenty of boats lying around? That's ok - as Brunswick Corp's (BC) stock clearly shows (by doubling in just under a month) the market is clearly seeing this top secret government program. The consumer is back - that is all you need to know. So please ignore the boats floating around in disrepair or abandoned... listen to the stocks. They know all.

On another note - we are now teaching the country that contracts and debts mean nothing. If things go awry - just walk away. Boat, car, home, personal loan, credit card... when the going get's tough. Dump it. It's not your obligation. It was an unfair contract that got you into your boat... how would you know the country could ever go into a real recession again? Uncle Alan Greenspan promised "never again".

Via the New York Times

Boat owners are abandoning ship. They often sandpaper over the names and file off the registry numbers, doing their best to render the boats, and themselves, untraceable. Then they casually ditch the vessels in the middle of busy harbors, beach them at low tide on the banks of creeks or occasionally scuttle them outright.

The bad economy is creating a flotilla of forsaken boats. While there is no national census of abandoned boats, officials in coastal states are worried the problem will only grow worse as unemployment and financial stress continue to rise.

“Our waters have become dumping grounds,” said Maj. Paul R. Ouellette of the Florida Fish and Wildlife Conservation Commission.

“It’s got to the point where something has to be done.” Derelict boats are environmental and navigational hazards, leaking toxins and posing obstacles for other craft, especially at night. Thieves plunder them for scrap metal. In a storm, these runabouts and sailboats, cruisers and houseboats can break free or break up, causing havoc.

Some of those disposing of their boats are in the same bind as overstretched homeowners: they face steep payments on an asset that is diminishing in value and decide not to continue. They either default on the debt or take bolder measures. 

They are expensive-to-maintain toys that have lost their appeal. The owners cannot sell them, because the secondhand market is overwhelmed. They cannot afford to spend hundreds of dollars a month mooring and maintaining them. And they do not have the thousands of dollars required to properly dispose of them.

When Brian A. Lewis of Seattle tried to sell his boat, Jubilee, no one would pay his asking price of $28,500. Mr. Lewis told the police that maintaining the boat caused “extreme anxiety,” which led him to him drill a two-inch hole in Jubilee’s hull last March. The boat sank in Puget Sound, and Mr. Lewis told his insurance company it was an accident. (good one Brian!) 

In many cases, he said, the boater is following this logic: “I am overinsured on this boat. If I make it go away so no one will find it, the insurance company will give me enough to cover the debt and I’ll make something on the deal as well.” (if this was done in some of our national banks, huge bonuses would be paid out for finding "innovative" techniques)

Florida officials say they are moving more aggressively to track down owners and are also starting to unclog the local inlets, harbors, swamps and rivers. The state appropriated funds to remove 118 derelicts this summer, up from only a handful last year. In South Carolina, four government investigators started canvassing the state’s waterways in January. They quickly identified 150 likely derelicts.

“Boats are luxuries,” Mr. Santos said. “This isn’t a good moment for luxuries.”

California is taking a more benign approach, with plans in the Legislature for a boater bailout of sorts. Under a law proposed by State Representative Ted Lieu, owners of marginally seaworthy vessels would be encouraged to surrender them to the state. (that's sweet of them. I wonder where a technically bankrupt state is getting the money to do that... ah yes.... thank you federal funds from bottomless pockets ) Kevin Ketchum, general manager of California Yacht Marina, which operates six marinas in the state, predicted that the law “is going to be phenomenally popular.