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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?

To: SGJ who wrote (267)	4/19/2003 4:43:18 PM
From: GraceZ	Read Replies (1) \| Respond to of 4907

I don't doubt there are plenty of people close to or legally bankrupt, but that it's going to have some big negative macro effect on the economy. Needless to say, filing bankruptcy for someone who is middle aged, well educated and has always been successful, always had a good job, paid their bills on time but has had a serious negative event like an illness or extended job loss can be personally devastating for that individual. What I doubt is that the 50% figure CB cites as technically bankrupt is coming from that group. If what he says is true it means half of everyone you and I know is technically bankrupt. I've done enough family net worth statements to know that ain't so. First off the boomers parents are dying in droves right now and leaving them houses and portfolios so some people who lived most of their lives living just beyond their means are now being bailed out one last time by mom and dad. (my parents were not so thoughtful) I have a brother-in-law who handles bankruptcies and yes, his business is up significantly. His clients all come from the formerly well heeled. Mostly upper middle class business owners. Nothing new there, small business owners go bust after every single economic downturn. Most people who own small businesses are like the farmer who wins the Lottery, when asked what he'll do now that he has won this big check he says, "I guess I'll just keep farming until it runs out."