Friday, December 12, 2008

How Bushco really screwed the world

What started the economic melt down in August? The mortgage crisis, and it is still fueling the further melt down, and why are people losing their houses? They can't declare bankruptcy on their credit card debt. Here is validation addressing this point.

Remember when progressives protested the 2005 bankruptcy bill? Remember when we said it would wreak economic havoc? And remember when Congress overwhelmingly passed it anyway? Well now a new report from the New York Federal Reserve Bank - not exactly communists - says that bill is playing a decisive role in the foreclosure surge that undermined our entire economy. Specifically, the bill effectively forces debtors to pay off their credit cards before making mortgage payments, thus throwing them into foreclosure. The Fed estimates that since 2005, the bankruptcy bill is directly responsible for causing 400,000 more foreclosures (32,000 per quarter) than the economy would have generated otherwise.


One Fly said...

This is a situation that is coming due soon too and will make the overall problems even worse.

OTC has liked to you. Hope you keep posting here reguarly. tb

P M Prescott said...

I'll try.