Finally, some good news on the personal finance front: Consumer bankruptcies are down by 8% in the first half of 2011. Americans seem to be getting a better grip on their money, but with fresh evidence the economy is stalling -- including the rising unemployment rate -- how long will the good times last?
The Bureau Labor of Labor Statistics reports the jobless rate had risen to 9.2% in June and the "underemployment rate" is rising to 16.2%. Bankruptcies track unemployment fairly closely, although such factors as heightened consumer debt and weak personal savings rates can worsen the problem. If the jobless rate doesn't turn around, economists say, bankruptcy rates will rise, leading more Americans into uncharted territory. But all that depends on other key economic factors outside of employment, housing chief among them.
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