No Money Left
November 11, 2008
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Even the Debt Collectors Running Dry
From the WSJ
This should be the best of times for America's debt collectors, since never has a society been so in hock. But ironically, much of the debt-collection industry is struggling because there's little cash left to squeeze from strapped consumers.
"People joke with me that my business must be great," said Mark Neeb, president of Affiliated Group, an Omaha, Neb., collection agency. "I would say the opposite is true. Our business flourishes when the consumer has money."
Debt collectors either work on consignment for creditors, keeping 20% to 25% of what they collect, or buy portfolios of unpaid debt from creditors and then try to collect enough to make a profit. When the people behind on their bills aren't classic deadbeats but are truly tapped out, debt collectors also get pinched.
Think about this....very few businesses are very profitable anymore. Many losing billions including Autos, Builders, Banks, Retailers....ect.....
Tax revenues are evaporating and there are few who can pay.......a very interesting problem indeed if our government wants to function.
The system must be resturctured.....the question is how will our politicans allocate the assets?
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