From the New York Times…

A recent study found that the typical family who filed for bankruptcy in 2007 was carrying about 21 percent more in secured debts, like mortgages and car loans, and about 44 percent more in unsecured debts, like credit cards and medical and utility bills, than filers in 2001.

Their incomes, meanwhile, remained static over those six years, according to the study, which used data from the 2007 Consumer Bankruptcy Project, a joint effort of law professors, sociologists and physicians. Researchers surveyed 2,500 households nationwide that filed for bankruptcy in February and March 2007.

I can’t but help note that in 2005 they change the bankruptcy laws to make it harder for people to get out of their debts. The goal was to force more people to pay what they owed. But the practical effect seems to have made it so that people pile the debt even higher before they declare bankruptcy.

I am not one of those touchy feely poor victim type people. But I never thought that the 2005 law was a good idea. From my perspective, the real problem is that banks were willing to loan people too much money. If you loan people too much money, it does not matter what the law says. You are not going to get repaid.

From Calculated Risk….

In Pakistan they protest receiving aid. In Iceland they protest not receiving aid. In the U.S. everyone just becomes a bank …

From Bloomberg….

More senior citizens are picking pockets and shoplifting in Japan to cope with cuts in government welfare spending and rising health-care costs in a fast-ageing society.

Criminal offences by people 65 or older doubled to 48,605 in the five years to 2008, the most since police began compiling national statistics in 1978, a Ministry of Justice report said.

I had to read that twice to make sure that elderly crime had doubled since 2003, not 1978. It would have been no surprises had it doubled since 1978 since absolute number of elderly people has probably doubled since then. But it seems as if Japan is truly seeing a crime wave of sorts from its elderly citizens. From later on in the same article….

“Some elderly, particularly men who lost their wives, even turn to crimes to be put in jail so they can be fed three times a day,” Yamada said.

The whole article is pretty depressing.

Meanwhile, On a different island nation they are dealing with a different problem. From the Telegraph….

Girls as young as 13 will be pressed to have contraceptive jabs under Government plans to “urgently” bring down teenage pregnancy rates.

Ministers have ordered council and health chief executives to increase the uptake of “long-acting” contraception in teen pregnancy “hot spots”.

The government also wants more school-based clinics to administer the jabs, which can make girls infertile for up to three months.

Teenagers can receive the injections or implants without their parents’ knowledge.

Critics warn that the controversial move will promote promiscuity and that injections and implants will not protect against the rampant spread of sexually transmitted disease. Some health experts also say that the drugs are unsuitable for girls who are still growing.

Its a wonderful world.

From the AP….

Four insurance companies on Friday asked the government to allow them to buy thrifts so they can qualify to receive federal money under the financial rescue program.

Hartford Financial Services Group Inc., Genworth Financial Inc., Lincoln National Corp. and Aegon NV, a Dutch company that owns U.S. insurer Transamerica, each asked the Office of Thrift Supervision for permission to acquire an existing savings and loan.

Calculated Risk has more on Hartford’s request.

This should not be allowed. If we are going to bail out insurance companies, let us bail out insurance companies. But let us not encourage insurance companies to buy small savings and loan operations just so that they can get billions of dollars from the Federal government.

Marginal Revolution alerts us to the fact that China’s generated 4% less electrical power in October then they did a year before. If this statistic is accurate, China is in a devastating free fall.

One should note that many of the comments on this post are garbage. For example, the idea that this change can be accounted for by the Olympics does not pass the smell test. In the first place, this was a year over year comparison. In other words it was comparing October of this year with October of last year. A lot of people talking about the effects of the Olympics are talking as if it is a drop off from the previous month. Furthermore, the idea that the Olympics can dramatically effect the energy consumption of a billion+ people is absurd. If anything, the Olympics should have cause a rebound in October as many the restrictions put into place for the Olympics were lifted.

The efficiency arguments are also a stretch. If China can grow GDP and shrink electrical usage at the same time it would be one for the history books. I don’t doubt that China is becoming more energy efficient. But historically speaking, efficiency gains only mean that that GDP growth results in a smaller increase in electrical generation. If anyone knows of a case where a developing country cut electrical usage and raised GDP at the same time they should let me know.

The real question centers around reliability of this statistic. All statistics taken by government agencies need to be taken with a grain of salt. And in China that goes double. Plus, I would have liked to know how noisy China’s electrical statistics normally are. Maybe it is common for them to bounce around a lot.

Having said that, there is lots of other anecdotal evidence to the effect that China took it hard in October.

For example, The US Censuses Bureau reports….

The U.S. Census Bureau announced today that advance estimates of U.S. retail and food services sales for October, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $363.7 billion, a decrease of 2.8 percent (±0.5%) from the previous month and 4.1 percent (±0.7%) below October 2007. Total sales for the August through October 2008 period were down 1.3 percent (±0.5%) from the same period a year ago. The August to September 2008 percent change was revised from –1.2 percent (±0.5%) to –1.3 percent (±0.3%).

Kind of funny how the US sales drop of 4% from last October matches the drop in China’s electrical consumption huh?