Interesting Personal Debt News Links (February 9, 2009)

February 9, 2009

* Financial plan wont include bad bank (Reuters America)

According to a report on Reuters , the new TARP 2.0? bailout package wont include a provision for a bad bank.

* Canadian bankruptcies soar 47 percent

The number of Canadian consumers and businesses going bankrupt soared nearly 47 percent in December.

* More consumers complain about bill collectors (David B. Caruso-)

NEW YORK After several years in which Americans were buying stuff on credit they couldnt afford, a rapidly increasing number are complaining about getting harassed and abused by bill collectors.

* Judge refuses to lower bond for jailed nurse (Roxana Hegeman)

WICHITA | A judge refused Monday to lower the cash bond for a jailed nurse who, along with her husband, is accused of wrongfully prescribing drugs at a clinic linked to 59 drug overdose deaths.But the Pain Relief Network, a patient advocacy group that supports Linda Schneider, said just minutes after the ruling that family and friends have come forward with the money. Network president S…

* Northern Rock’s losses on repossessed homes soar (Nicky Burridge, The Independent Online)

Losses incurred by Northern Rock on repossessed homes soared nearly four-fold during 2008 as the economy deteriorated, figures showed today.

* Wind condo buyers want out, blame financial crisis (Baltimore Business Journal)

Add a new reason to the list of tactics being used to get condo buyers out of contracts: the global financial crisis.

* Harry Gross: Finance mess hits home (Harry Gross, Philadelphia Inquirer)

Dear Harry: This financial mess is about to hurt us severely. We bought our home in 2005 for $202,000. We had a mortgage of $152,000, so we were not overbuying. At the time, my wife and I were working, each making about $70,000. Things looked rosy. In June, my wife’s employer moved to North Carolina. She was offered a job there, but we obviously couldn’t move. So far, no bites up here. The resu…

* Stimulus difficulties bad news for bank bailout (Carolyn Lochhead, San Francisco Chronicle)

That President Obama has to go on the road to sell a giant spending bill that would shower money on states and cities, roads and bridges and other projects wildly popular in Congress is not a good sign for what is to come. Economists say a new plan to rescue the banking system is just as vital to stopping an unusually destructive economic contraction.

* Mass. elder abuse on rise (Kay Lazar, Boston Globe)

More of the state’s elderly are being abused or neglected, as economic stresses push family caregivers to the breaking point and the social service programs that once helped them are cut back.

* James Surowiecki: The myth of moral hazard. (James Surowiecki, New Yorker)

In the course of the ongoing financial crisis, weve been ceaselessly reminded of the dangers of moral hazardthe idea that if people are insulated from the negative effects of their gambles they are more likely to act rashly. When Bear Stearns was bailed out, last spring, the move was attacked for exacerbating the threat of moral hazard. When Lehman Brothers was allowed to go bankrupt, in mid-…


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