The Fact is Consumers' Credit is a Disaster

...therefore, financial reform, consumption and recovery will be, too

By Bill Glynn

What can the government do right now without spending any money and buying hoards of bad debt?

43 MILLION Americans are in credit jail. These are people with a credit score lower than 600 and considered credit unworthy today; and I assure you, with financial reform, they are not getting bail for a long, long time. There will be millions joining the crowd this year and in the years to come; and even more devastating and with longer-term consequences is the continued rise of foreclosures and bankruptcy. The landmark Financial Reform legislation is about to make it far worse as the result will cause banks and credit card companies to constrain borrowing even more than they have already and taxes will make sure it gets worse. I offer two solutions at the end of this blog.