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To: Alex who wrote (7954)	2/28/1998 3:47:00 PM
From: Bobby Yellin	Read Replies (2) \| Respond to of 116764

thanks Alex for finding the news release...wonder what the story is behind the record bankruptcies..people buying on too much credit? and being irresponsible? people not earning enough and living from paycheck to paycheck? If these are great times here..what will happen in bad times.. Wish the article had given statistics as to what types of companies filed for bankruptcies and if that number was high or just the average citizen number of filings was high Question about the article saying that China was going to issue US dollar debt..don't know if I understood it.. If I did..still a lot of questions.. Is China betting that the US dollar will fall?(most respected analysts think dollar will continue to be strong Will China have to hold in reserve the dollars to issue the debt? to back up the debt? If so..don't understand what that would accomplish..do understand when government issues its own debt because it has its own printing press and can hope down the road that inflation will cancel out a lot when it becomes payback time Big question is if currencies were pegged to something non printable.. would all these financial crises be incurred.. Most of time lately have been thinking that money does control the world and governments go along with big money for their own private agenda and don't care, even in this global economy, if the bits and pieces don't fit together...(today I had a lot of trouble with the internet and then realized that this medium of exchanging ideas can easily be controlled) Bobby

To: Alex who wrote (7954)	2/28/1998 5:31:00 PM
From: Abner Hosmer	Respond to of 116764

Hi Alex - re your post: >>More than 1.4 million bankruptcy petitions were filed -- up about 300,000, or 19 percent, from the 1.17 million filed in 1996.<< It appears that we've been seeing this rate of increase since 1994: bog.frb.fed.us >>An element in the slowing of consumer credit growth may have been assessments by some households that they were reaching the limits of their capacity for carrying debt and by some lenders that they needed to tighten selectively their standards for granting new loans. In the mid-1990s, the percentage of household income required to meet debt obligations rose to the upper end of its historical range, in large part because of a sharp rise in credit card debt. Between 1994 and 1996 personal bankruptcies grew at more than a 20 percent annual rate, to some extent because of households' rising debt burden; a change in the federal bankruptcy law and a secular trend toward associating less social stigma with bankruptcy also may have contributed. Over the same period, delinquency and charge-off rates on consumer loans increased significantly.<<