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Economist:
BANKRUPTCY filings rose 20% in the year to June 30th compared with the previous 12-month period, according to statistics released on August 17th by the Administrative Office of the US Courts. This takes quarterly filings to their highest point since tougher bankruptcy laws were introduced at the end of 2005. That change brought a spike of bankruptcies, as companies and individuals rushed to declare themselves broke under the more lenient old regime. The data suggest that an older trend is reasserting itself. This is could be more bad news for America—or it could just mean that creative destruction is alive and well.
I know what you are saying, people who file for bankruptcy normally are losers who mismanage their money or are half-wits. Except they are not. There were ways to stave off the rise in bankruptcies or lessen the blow (ex. Mortgage Cramdowns) but banks don't like that sort of thing, so we tell people "go suck an egg." Or something of that sort. With the most recent unemployment report being quite negative I am sure Congress, the Fed and the White House will be swiftly moving into action...
I am Frank Chow and I approved this message
Economist:
BANKRUPTCY filings rose 20% in the year to June 30th compared with the previous 12-month period, according to statistics released on August 17th by the Administrative Office of the US Courts. This takes quarterly filings to their highest point since tougher bankruptcy laws were introduced at the end of 2005. That change brought a spike of bankruptcies, as companies and individuals rushed to declare themselves broke under the more lenient old regime. The data suggest that an older trend is reasserting itself. This is could be more bad news for America—or it could just mean that creative destruction is alive and well.
I know what you are saying, people who file for bankruptcy normally are losers who mismanage their money or are half-wits. Except they are not. There were ways to stave off the rise in bankruptcies or lessen the blow (ex. Mortgage Cramdowns) but banks don't like that sort of thing, so we tell people "go suck an egg." Or something of that sort. With the most recent unemployment report being quite negative I am sure Congress, the Fed and the White House will be swiftly moving into action...
I am Frank Chow and I approved this message
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