Is the current credit crisis and housing slump due to the bankruptcy law changes made a year ago?

I can't help but think that the changes weren't the right ones. It seemed like it would have been better to limit how much above and beyond interest the creditors could charge than to make it harder for people to abandon their debt.|||No, it is caused by irresponsible lenders and borrowers. The changes in bankruptcy laws were not as drastic as the public has been led to believe. The changes do not even apply to lower income people. Anyone with lower than average income is exempt completely. It only applies to higher income people who are abusing the system to avoid paying bills.|||There is a lot of merit to your thoughts, but I think these issues are more directly related to the overall downturn in the economy. The rising gas prices and the gradual decrease in the American standard of living are combining to make it more difficult for people to afford the lifestyle they are accoustomed to and our government is deceiving people by telling us, "We're not in a recession. Go spend money. The unemployment roles are down, the economy created 100,000 new jobs last month." But, they neglect to point out that 95,000 of those new jobs pay minimun wage.