Tuesday, January 4, 2011

2010 - Consumer Bankruptcies at 9%

SAN FRANCISCO (MarketWatch) — Consumer bankruptcies rose 9% in 2010 and filings will keep climbing this year given high debt levels and tepid income growth, the American Bankruptcy Institute said Monday, citing data from the National Bankruptcy Research Center.
Ironic.  In the wake of almost 20% unemployment (U6) record federal debt almost $14 Trillion (with a "T", yes), largest foreclosure rate in the history and still growing, 9% Consumer Bankruptcies and expected to grow double digits, mortgage rates going up, falling real estate prices, rising commodity prices (inflation, think $4 gas this summer with no jobs, yeah! feels great)....and we are Partying at the WallStreet with a record climb at the indices from Aug 2010 lows to the 1/1/11 highs.  Most of the highs were made by pushing the "futures" in the overnight market but this is the topic of discussion for another post. :)  What I am thinking is, with 9% Consumer Bankruptcies and 20% U6, Can USA really sustain this kind of growth they are projecting?  3.5 to 4% GDP for 2011?  I've seen first hand how Credit Card offers have started pouring in from all over the country, (ME, I can understand lol) but to people with extremely sub-standard Credit histories, with no jobs and prior bankruptcies.   Come on guys, give me a break.  What are we trying to do and what the hell are we thinking?  December 2010, saw a record breaking holiday shopping season with these numbers.  My bet is come Jan/Feb 2011 and going forward a lot of these people with new hi-tech toys like IPAD, IPHONE, WII, KINECT and new cars, GMC, FORD etc. will have hard time paying their bills.  We are starting all over again at a time when we are not even out of the original mess.  Remember the fundamental problem we all are facing here as Consumers, Companies, Governments, Countries....We are spending the money WE DON'T HAVE based on future growth.  This is a disaster waiting to happen.  Bunch of "Fxxxxxx" Morons sitting in the high profile places, called FEDS who unfortunately has power to control our lives are doing everything in their power to make the Rich (GS)even more Richer and poor middle class people (US) even more poor.  How in the world are we going to get out of this?  We are "FxxxED".  God Save our Great Country.

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