Would overhauling Bankruptcy laws help the economy?

Congress Overhauls Bankruptcy Laws

http://www.npr.org/templates/story/story.php?storyId=4600645

This one law may be at ground zero as to why we can't move forward. Allow people to start fresh, the way the banks were bailed out and to start fresh, and it might allow this economy to start anew.

I will even go out on a limb and suggest something even more radical: Remove old credit ratings. This would be a Noahs Ark of the financial system.

 

Bankruptcy is a "start fresh"... stiff everybody you know, and charge again.

In the 60's, and before credit cards, people didn't have these problems. When they wanted something they either saved for it or put a small amount down in "layaway".

Credit cards should be banned. That would be a start.

 

Business does it all the time. Banks did it in unprecedented gradiosity. Maybe it is two strikes you are out?

CCs are a weapons of self-financial mass destruction, except for the ones that __MUST__ be paid at EOM, like Amex.

 

The alternative is years and years of stagnant unemployment. What is the least of all evils?

One in 4 people in this country are living under the official poverty line. This is in the richest nation in the world!!!

 

We are going to get DECADES of stagnant unemployment thanks to globalization... UNLESS the government does an "about face" and structures our economy and culture to be the most capital and business friendly country on the planet.... Not gonna happen with Odumba at the wheel, that's for sure.

 

One persons debt is another persons income. If you stop debt then you will stop pension incomes. This is the problem there is so much debt if they stopped it all it would create a crash. Bankruptcy is not a option on mass. You have to provide another way paying what is owed so the system does not crash. Also if people stop repaying debt it will stop being lent.

 

I heard they took the word Layaway out of the dictionary as its an obsolete word now.

 

Well instead of letting people go bankrupt. Give them the same options bank got. Have the government pay everyones creditcards and mortgages and then only charge back to people a 0.25% interest rate.

 

I Think Sears and K marts is offering lay a away again. 8 weeks.

Who in the heck is going to lay a away a thousand dollar appliance and pay it off in 8 weeks. Get real.

 

Well, the official line is that when you bail out people it creates moral hazard, but not when you bail out business.

Remember these words, for they define America well: Corporate Welfare