The sub-prime meltdown comes in a context of debt panic—specifically, of other-people’s-debt panic. Liberal economists, values conservatives, and hug-the-middle moderates are in full agreement on this one: Poor people’s access to debt is driving them to fiscal ruination or worse. James D. Scurlock’s celebrated documentary Maxed Out collects horror stories—including youngsters driven to suicide by credit card debt—to prove the thesis that “banks and credit card companies are setting their customers up to fail.” Anya Kamenetz, author of Generation Debt, envisions debt-ridden young professionals as the new serfs. (The hard-luck bio on Kamenetz’ website includes the Dickensian detail that she “graduated from Yale seven months after the 9/11 attacks.”) Ambitious politicians and math-unencumbered reporters are in hot pursuit of the culprits: predatory lenders, indifferent regulators, Madison Avenue captains of consciousness—everybody except people who borrow large sums of money with no intention of paying it back.
The conventional wisdom used to say the poor didn’t have enough access to debt.
