Bankruptcy Filings are Caused by Financial Deregulation
The need to file bankruptcy is, of course, connected with the economy. In turn, the economy is affected by regulation–or lack of regulation. Elizabeth Warren is a Harvard Law School professor, well-respected consumer advocate, and bankruptcy expert. She’s also Chair of the Congressional Oversight Panel created by Congress to “review the current state of financial markets and the regulatory system.”
Professor Warren has a knack for explaining complex concepts in simple terms. Recently, she appeared on “The Daily Show” with Jon Stewart to discuss regulation of the financial markets and the “boom and bust” cycles of the economy. As Professor Warren explained, we learned from the excesses of the 1920s that financial markets needed regulation. That regulation, in turn, prevented depression-type financial crises from the 1930s until recently.
As my high school history teacher liked to say, “those who don’t know history are doomed to repeat it.” We’ve found that out the hard way. Learning from people like Professor Warren will hopefully help avoid the “boom-bust cycle” in the future. Meanwhile, bankruptcy rates continue to climb.
The point of this post is twofold: (1) to help you understand why the economy is in its current condition, and (2) to help you understand that if you’re having financial problems, it’s more than likely not your fault. While there are certainly exceptions to any rule, most folks I see have been caught up in a financial tidal wave not of their own making. Most people I see experience a great sense of guilt and fear about their need to file bankruptcy. They blame themselves. The reality is that if you’re experiencing financial problems, the cause goes way beyond you and your actions. And you’re not alone. (See this map showing the economic decline through historical unemployment data.)
To view more of Professor Warren’s videos, go to the Congressional Oversight Panel’s website. To view Professor Warren’s interview with Jon Stewart, click “Elizabeth Warren” below.
|The Daily Show With Jon Stewart||Mon – Thurs 11p / 10c|