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Re: Bankruptcy Reform Bites Back
From: David Farber <dave () farber net>
Date: Tue, 6 Nov 2007 09:34:40 -0500
Begin forwarded message: From: Dave Wilson <dave () wilson net> Date: November 6, 2007 9:13:10 AM EST To: dave () farber net Subject: Re: [IP] Bankruptcy Reform Bites BackForeclosure is nothing; at least that's a real asset. The real pain is going to begin when people start defaulting on a trillion dollars worth of unsecured credit card debt, which up until recently consumers have been covering by refinancing their houses. But with that spigot closed, credit card defaults -- up until now historically low because people have been using their houses as ATMs -- are certain to rise. The really interesting fact about the bankruptcy "reform" law, in my opinion, it that it was passed at a time when all the authorities were insisting that there wasn't a housing bubble, and that if there were a bubble, its collapse wouldn't prove a hazard to the broader economy. Hard to believe that the pressure for changing bankruptcy laws to make it nearly impossible for consumers to ever shed themselves of a soul- crushing debt didn't come from the very same people who kept insisting that there wasn't any danger that the housing bubble wouldn't collapse and leave millions of Americans saddled with several lifetime's worth of debt...
-dave ------------------------------------------- Archives: http://v2.listbox.com/member/archive/247/=now RSS Feed: http://v2.listbox.com/member/archive/rss/247/ Powered by Listbox: http://www.listbox.com
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- Bankruptcy Reform Bites Back David Farber (Nov 06)
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