Why are so many people concerned about the state of the global economy? If filing bankruptcy is in the future for the world, if that was possible, what could be done? Over the last couple years there have been many articles and commentaries written about the global debt crisis. Back in 2007 when the real estate market burst, it took the economy in the US along with it. The Fed told us they needed to bail out all the banks to avert a global economic collapse. So what the US did was essentially start up the printing presses and gave money to all the banks to cover their bad debts. This was supposed to fix the problem, but in reality, all it did was kick the can down the road.
Bronx Bankruptcy Lawyer, Bankruptcy Attorney Tampa, Indianapolis Bankruptcy Attorneys,
Because of this financial problem, many Americans are filing bankruptcy as a way to stave off creditors. It's funny how the unregulated credit industry is responsible for this disaster, but yet they are sending the bill to the American taxpayers. Back in the 70s the entire debt for the United States government, including all consumer debt was less than $2 trillion. 40 years later that number has now surpassed $55 trillion. Shortly after September 11, the president of the United States came on TV and told Americans that they needed to spend to get the economy back on track. If something didn't happen, we would be heading for a double dip recession. The credit markets were deregulated and everyone decided they needed to buy a house and a new car. Everyone knows how that ended and now Americans are losing their homes to foreclosure and filing bankruptcy at record rates. I don't like to sound like a doom and gloomer, but what happened to the days of when people saved for large purchases.
In the 1970s, the credit market decide it was time that everyone have a credit card. First it was the department stores and then came Visa and MasterCard. Credit ran rampant as Americans found out that why save, when you could have it now and pay for it later. The automobile industry made it affordable through lease programs for Americans to drive luxury automobiles that they normally could not afford. This caused a large number of people to live way beyond their means. By the 90s, everyone in the US wanted to live like a rock star on a blue collar salary. This is all fine, but at some point the debt needs to be paid.
When the millennium hit it was common to see a housekeeper at the local big box store carrying a designer purse. In what world does that make sense, for someone who makes $500 a week, carrying a $1000 purse? Thanks to credit all this is possible. In the last decade, people started leveraging the house they could not afford as the real estate market heated up. They went on luxury vacations, bought expensive toys like boats and luxury cars to no end. Everything was fine, until September 2007 when it happened. I remember back in 2005, talking to a realtor about the bubble that was being created. They told me, that it would never drop and if you didn't jump in now you would never own a house. What's funny is, everyone now is telling me they saw it coming, but for some suspicious reason got caught with their pants down and are now losing everything. Hindsight is always 20/20, what's hard to do is predict what's to come.
Now we are heading for a crisis of epic proportions. Many economists are predicting the slowing down of foreclosure rates and Americans filing bankruptcy is just the calm before the storm. I'd tend to agree with them as there is no way to spend our way out of the debt that has been created. The average American has $16,000 in credit card debt and when you consider the average wage is only $35,000 a year, it's pretty obvious how this is going to end. At some point in time other governments might stop taking the US dollar and when that happens we will have a Weimar Republic moment. Americans need to wake up and take a look at their personal financial situation before it's too late. If that means consulting a bankruptcy attorney and filing bankruptcy, then so be it. Burying your head in the sand thinking this problem will go away is foolish. It's time for all of us to do some soul-searching and get back to the values that made America great.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Medical Bankruptcy
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment