No Wonder Consumers Are Buckling

The economy's last pillar of strength is starting to weaken under the weight of rising joblessness and bankruptcy filings

The linchpin keeping the U.S. economy narrowly in the black in the second quarter was the consumer. The everyday Joes and Janes of America were either recycling home equity lines of credit or digging further into debt. The drop in mortgage rates and the steady disbursement of federal income tax rebate checks this summer may help bolster this last standing pillar of growth into the third quarter as well.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.