Replies to post #22830 on Your Economy (No Politics) (YE1)

[StephanieVanbryce]

Credit Crunch on Middle American Dreams



Ah, if only the American Dream purchased on easy credit were so simple to leave behind.

With the previous tightening of the bankruptcy laws (aimed to protect big banks and their questionable lending practices) many American’s won’t find it so easy to excuse themselves of debt this time around.
http://money.cnn.com/2005/04/20/pf/bankruptcy_bill/index.htm

The cycle of easy credit with an easy escape (either by refinancing an appreciated property or Chapter 7 bankruptcy that previously allowed many to walk away from unsecured debt for only a few hundred bucks) is no longer an option. It’s also a situation the economy hasn’t faced before and any recession caused by the current housing market slowdown, could be prolonged by the difficulty the middle class will have getting back on stable financial feet.

Of course, in a country where welfare is viewed negatively by capital idealists, there’s pretty much a guarantee that any trouble by the big corporations will find some sort of corporate welfare so they survive.
http://blog.retailtrafficmag.com/retail_traffic_court/2007/08/09/bush-signals-corporate-tax-cut-but-...