Bankrupt: ; Middle-Class Dream Fades

Summary


HERE'S AN ironic welcome to a new year: You're in a decade in which one of every seven families with children will file for bankruptcy.

What's to blame? Too many Gameboys, lattes, vacations in Cancun? Hardly, according to Harvard law professor Elizabeth Warren. She surveyed more than 2,000 families, pored over government data on consumer spending and found out that middle-class families are not going broke over excess consumer spending. "Families are going broke over mortgages," she says.

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Extract


Bankrupt: ; Middle-Class Dream Fades

The single biggest predictor for bankruptcy? Having a child.

The mortgages that are stretching the budgets of today's families are not paying for McMansion...

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