The largest segment of people in trouble are decent people who streched a little too far. Some people wanted four bedroom houses and two new cars when they had the resources to afford a three bedroom house and two used cars. Others bought condominiums with an ocean view when they could only afford a place a couple blocks off the ocean.
are you sure about this? do you have a study to back it up? i hesitate to make any counter-assertions, not really knowing anything about the demographics of poverty today… but it seems unlikely to me.
excessive debt is definitely a huge problem today, with a lot of different causes – fraud, as you mentioned, being a biggie, and predatory lending, and just plain poor judgment.

but i personally wouldn’t lump all bankruptcies under the banner of poverty. to me, poverty means working as hard as you can and still being unable to obtain the necessities: food, housing, utilities, medical care, decent education or job training.
So, do we demand federal aid for people who want to live beyond their means? Are families in three bedroom houses with two used cars the oppressed poor? I live in a three bedroom house with one 10 year old vehicle and some of you would consider me rich. Where do I sign up for my handout? My JP Morgan stock dropped over $2 last week.
i think this is an important point you’re making. not everyone who
feels like they’re struggling is actually struggling. current welfare policies, as generally ****ed up as they are, try to take that into account. when they’re evaluating whether or not you’re eligible, they exclude certain assets, like a car you’re using to get to work (and they do pay attention to its blue book value) or a house you’re living in. in calculating food stamp benefits, the major factors seem to be the size of your family and the proportion of your income that’s spent on housing.
but they might look at your stock and tell you not to slam the door on your way out.
