One point hinted to in the article is the evolution of the attitude toward debt. US business worked hard, especially beginning in the 1920s, to remove the stigma associated with debt. Previously debt was considered to be avoided, except for houses and products associated with virtuous activities, such as pianos.
As the older people, who still have some resistance to taking on more debt, expire and are replaced with a more exuberant younger generation, the problem will become even more complicated. The reliance on debt to fuel the economy did not begin with the housing boom. I wonder what the collision between the accumulation of debt and the new bankruptcy law will be. We might get a hint in November, when the minimum payments will be going up. -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu
