More on Bankruptcy
"More American are gambling their way to the poor house, piling up credit card debt and then filing for bankruptcy. A new study released this morning concludes there is a correlation between the rapid growth of legalized gaming and the current surge in personal bankruptcies. NJ-based SMR Research says the overall personal bankruptcy rate is 18% higher in the 298 U.S. counties which have legalized gambling and 35% higher in counties with five or more gambling outlets. Shelby County, Tennessee which has easy access to nearby Mississippi gaming establishments boasts the highest bankruptcy rate in the nation, four times the national average. SMR points out the vast majority of the nation's 2.5 million compulsive gamblers use credit cards for gambling money and more than 20% of compulsive gamblers have filed for bankruptcy. The firm estimates credit card companies must charge at least two percentage points of interest to cover bankruptcy losses. The study's release comes less than one week after the Federal Bankruptcy Review Commission adopted a draft proposal which permits easier dischargeability of credit card-gambling related debts."
To answer my own question of a few posts back, the market seems to have ignored the growing bankruptcy rate since 1980.
Year Total Filings
1980 331,264
1981 363,943
1982 380,251
1983 348,880
1984 348,521
1985 412,510
1986 530,438
1987 577,999
1988 613,465
1989 679,461
1990 782,960
1991 943,987
1992 971,517
1993 875,202
1994 832,829
1995 926,601
1996 1,178,555
Best wishes,
I2 |
