Monday, October 1, 2007

But Debt Lasts All Night

Kelly's post about the gilded web of death and taxes prompted me to make a pitch for my livelihood and passion: Debt. People die, and many are compelled to make a game of it, arranging their affairs so as to pass wealth to their heirs with the lowest possible tax effect. I like the bigger game. Debt. In the past two years, more than $300 billion in adjustable rate home mortgages have adjusted sharply upward, putting the big squeeze on more than 300 million Americans. Something's gotta give. If consumer bailouts don't ring your bell, there's plenty of action for the big boys and girls. Check out the Implode-o-Meter, a site that lists major financial institution failures arising from the collapse of the subprime lending market (161 and ticking). The collapse of these lenders and other players in the capital markets will generate a heap of litigation enough to share with the "non-bankruptcy" lawyers. Sure people die. And some want estate planning before they go. But we all feel the leverage. A career in insolvency is the ultimate hedge. For us, bad news is good news.

1 comment:

Alison M. Kilmartin said...

Sure we can bail them out, but how do we keep them from diving in head first to begin with? Proverbs 22:7 says that, "... the borrower is slave to the lender" and boy if that isn't true. Our instant gratification culture and the market's mindless willingness to enable is resulting in a gargantuan pile of debt and, as Professor Reilly pointed out, a ton of insolvency. True, this provides endless work for lawyers, but it also evidences a lack of the good sense and self-restraint required for individuals and businesses to ultimately reach their full potential.