Edmund Andrews, an economics reported for The New York Times, provides a detailed look at his family’s downward economic spiral brought on by a mortgage they couldn’t afford and credit card debt in an article posted 5/14/09. I had never heard about overdraft protection on a checking account that was tied to a credit card.
The last paragraph of the article does not bode well for a quick return to profitability for the banking system. It has been eight months since they defaulted on their mortgage, and they still haven’t been called back by their lender about a modification program.
Update: There may be more to this story. Megan McArdle of The Atlantic.com finds evidence that Patty, the wife, has declared bankruptcy twice before.
