Southern Man

Friday, April 02, 2010

Debt and Bankruptcy

Earlier today Glorious Leader said that he did a "full court press" for health reform because without it "this country was going to go bankrupt."

He doesn't mention that
he's already run up more debt in fifteen months than the previous administration did in eight years.

Southern Man has a friend, an educated professional, who took a good hard look at his finances (which included a small mountain of credit card debt) and realized that he was bankrupt. He was up to date on all of his payments and had stellar credit, but the end of the road was approaching. But because of his good credit, he was able to borrow nearly six figures on his remaining accounts. And sure enough, this saved him from bankruptcy.

For the moment.

Now it's two years later. Again, Southern Man's friend is approaching the end of the road. And now the debt to be settled is twice what it was two years ago.

The moral of this story: sure, borrowing lots of money can save you from bankruptcy by merely delaying the inevitable. And when it comes, the fall is much harder.

Lots of blogs have already posted this graphic. It's linked above. But Southern Man will post it anyway. Take a good hard look at those numbers and think about the future of this country.


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