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.
