And the housing market?
I was thinking the same thing.
It does seem awfully coincidental that Bush made sure that credit card debt could no longer be declared under bankruptcy, just before the housing market crash. The credit card companies arent hurting in this at all, they probably make all there extra profits in late fees and default interest rates. They are also being smart now by limiting credit limits…they know what will keep them profitable.
I would think alot of the forclosures happening now, could have been avoided if homeowners were allowed to discharge their credit card debt. They could have at least kept thier homes and mortgages even after bankruptcy. At this point some homeowners are struggling and cant do both, so without being able to wipe out the credit cards in bankruptcy, they have to lose the home, then get tacked with the price of the home after being sold as is or at auction.
I dont feel sorry for everyone that was ignorant either, I do think they need to have a huge accountability for not being responsible and knowing what they could afford. But….it is told to everyone that owning a home is the “American Dream”. These mortgage companies and even realtors, were pushing at lending that dream at huge interest rates knowing these people couldnt afford it after a few months, and they didnt care.
To many people got into the “used car sales business” of housing.
