2010 Personal Bankruptcies: The New “Old” Trend Continues
A 20% increase over the prior year, personal bankruptcies recently jumped to a five year high. While the recent increase in filings has been alarming, the truth is that it could merely be a mean reversion, which as the chart shows, is exactly where filings used to be prior to the 2005 bankruptcy reform passed.
As The Economist, creator of this chart points out, ” The data suggests that an older trend is reasserting itself“.
This is could be more bad news for America—or it could just mean that creative destruction is alive and well.”
Either way, the chart is a sore sight. As it’s an election year don’t be surprised if this chart shows up in the mainstream media, with the section before 2005 cut off.
Chart Correction
Item: Dotted Red Line
Should be labeled: NEW LAW HAS NO EFFECT
Click Image To Enlarge:
~zerohedge, economist
