Congress passed new stricter bankruptcy laws which preclude unsecured (credit card) debt from being written off, giving false security to investors and causing a decrease in position of mortgages. Did this foreshadow the fragility of the lending institutions?
Yes, bankers dug their own graves. Add to that the exclusions of primary mortgages from bankruptcy and what's a consumer to do? They can't pay it or file bankruptcy on it. So they just walk away from the debt and salvage what they can of their credit. The banking industry got everything it wished for. How's it working out for them?
It's time to take a hard look at the anti-consumer legislation of the republican years. A real hard look.
