Showing posts with label Bankruptcy. Show all posts
Showing posts with label Bankruptcy. Show all posts

Tuesday, February 15, 2011

Can't Imagine there are Bankruptcy Laws as Harsh as this One in the US

"... Bankruptcy laws were amended to introduce a system of “partial indentured servitude.” An individual with, say, debts equal to 100% of his income could be forced to hand over to the bank 25% of his gross, pre-tax income for the rest of his life, because, the bank could add on, say, 30% interest each year to what a person owed. In the end, a mortgage holder would owe far more than the bank ever received, even though the debtor had worked, in effect, one-quarter time for the bank." -- [Project Syndicate: Prof Joseph Stiglitz]