more economic imbalances
Source Michael Perelman
Date 07/11/11/18:06

THE TIGHTLY WOUND economy is such that when adjustments to contradictions take place
in one spot they create new contradictions elsewhere, at least that is what an old
German philosopher once said. Here is an example:

"Washington Mutual Inc. got what it wanted in 2005: A revised bankruptcy code
that no
longer lets people walk away from credit card bills. The largest U.S. savings and
loan didn't count on a housing recession. The new bankruptcy laws are helping
foreclosures to a record as homeowners default on mortgages and struggle to pay
credit card debts that might have been wiped out under the old code, said Jay
Westbrook, a professor of business law at the University of Texas Law School in
Austin and a former adviser to the International Monetary Fund and the World Bank.
"Be careful what you wish for,'' Westbrook said. "They wanted
to make sure that
people kept paying their credit cards, and what they're getting is more

Howley, Kathleen M. 2008. "Bankruptcy Law Backfires as Foreclosures Offset

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