Thursday, December 18, 2008

America Will Soon Owe More Than Its Citizens Are Worth

The sum of America’s liabilities and other financial commitments now exceeds the collective net worth of its citizens, the Peter G. Peterson Foundation has calculated using the latest official data. Growth in the government’s unfunded promises for social insurance programs such as Medicare, combined with a drop in Americans’ net worth due in part by lower home equity values, is causing this unprecedented milestone.

In related news, bankruptcy cases filed in federal courts numbered over 1 million for the 12-month period ending September 30, 2008, up more than 30 percent when compared to filings in Fiscal Year 2007, according to statistics released by the Administrative Office of the U.S. Courts.

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