Middle-Class Death Spiral: Consumers Have Never Been In More Debt, And Bankruptcies Are Surging

Paul’s charge to us in Romans 13:8 to owe nothing but love is a powerful reminder of God’s distaste for all forms of debt that are not being paid in a timely manner (see also Psalm 37:21). At the same time, the Bible does not explicitly command against all forms of debt. The Bible warns against debt, and extols the virtue of not going into debt, but does not forbid debt. The Bible has harsh words of condemnation for lenders who abuse those who are bound to them in debt, but it does not condemn the debtor. This wasn’t supposed to happen.  During the relative economic stability of the past few years, the middle class was supposed to experience a resurgence, but instead, it has just continued to be hollowed out.  The cost of living has risen much faster than wages have, and…

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The American Public Is Over-Leveraged: Bankruptcies Are Up 5%

Jesus hated the money changers’ exploitation of the devout two thousand years ago, and He still hates it. We may not have shady characters collecting temple taxes outside our places of worship, but we have them invading our homes through radio and television. We are wise to remember how Jesus reacted to such selfish swindlers. With no apologies, He drove them out of His Father’s house. When we identify modern money-changer, we should do the same. More and more Americans are getting themselves into so much debt that it becomes impossible to pay back their loans. In the month of July, there was a 5% increase in the number of bankruptcies filed in the United States. Bankruptcy petitions for consumers and businesses are on the rise. While the rise seems “slight,” this could be a glaring sign that the “everything bubble” is going to pop. According to Market…

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