Personal bankruptcies decline in Minnesota

Good news for Minnesotans:

Through May, 8,740 households filed for bankruptcy in Minnesota, a 9 percent drop from the 9,596 who filed in the first five months of 2010.

It is nice to see some good economic news. As the housing bubble continues to burst, people will be able to get into more affordable housing and will be less likely to file for personal bankruptcy. The people from Minnesota have been hit really hard by the economic downturn. Manufacturing has left the state, and with money tight, Target and General Mills are not selling able to sell as many consumer goods as they had in the last.

Robert Reich: There's One Big Problem In The US Economy That's Dragging The Whole Thing Down

In today's Business Insider former Labor Secretary Robert Reich looks at why the economy is still in the pit:

The problem isn’t on the supply side of the ledger. Corporate profits are still healthy. Big companies continue to sit on a cash hoard. Large and middle-sized companies can easily borrow more, at low rates. The problem is on the demand side. American consumers, who constitute 70 percent of the total economy, can’t and won’t buy enough to get it moving. They justifiably worry they won’t be able to pay their bills or afford to send their children to college or to retire.

Consumers cannot find a way to consumer and Lenders don't trust the people they lend too. As long as the accutuale economy remains stagnate personal bankruptcy will continue to rise.