Florida Bankruptcy Attorney Blog

The Federal Reserve has reduced the Lending Rate between banks to a level that is actually 0 percent. This should give everyone pause on the seriousness of the present state of our economy. It would appear that any additional economic stimulus may come from an increase in government investment into infrastructure and other public works. This is clear a gigantic period of correction for everyone, consumers, banks, and other institutions. The problem so far though, is that the average consumer still isn't getting any bailout, there is still little foreclosure relief in the state of Florida, and bankruptcy remains for the consumer in many cases the most viable option for handling their debts. Many consumers may also find themselves getting a Christmas present in the mail from their credit card companies- a notice of credit card cancellation or a significant credit line deduction, just in time to perhaps freeze up the month of January in more ways than one.

There are various indications that the commercial real estate market may be about to collapse, similar to what was seen in the residential and consumer housing markets. If this occurs we could probably expect a slew of Chapter 11 filings and other mayhem to the economy in this sector. So far though, things appear to be holding somewhat steady.

New Mortgage Crisis Looms

A new crisis looms, but hopefully this won't impact things in January, right as consumers are about to get slamed with an apparent round of consumer credit line cuts by the lenders.

It was recently reported that the post Thanksgiving shopping day had another high turn out as in every other previous year. While it is good to see that people are getting things for their family and friends to give as gifts this holiday season (or perhaps splurging on the deals for themselves), one has to wonder whether Americans are truly addicted to spending beyond their means. Given the record low levels of available credit, and various reports that credit card companies will be slashing their high limits across the board on various consumer loans, one wonders how prepared consumers and the economy will be after the holiday season and come January. Bankruptcies may go higher once again as the economy seems to be remaining in a downward slump for the time being.