In the end, it wasn't the housing bubble. It was the debt bubble. And it's a-poppin'

Houses were just the recipient, and the best way to get boatloads of money on margin. But then there's all the other consumer debt - cars, furniture, trips, clothes, hookers, you name it, they charged it.

Now as interest rates go up and up, people's payments will go more and more to just meeting the interest burden. And they can't use the housing ATM to pay for it anymore. As a matter of fact, that housing equity they tapped is no longer there, so they owe that back too. Hello bankruptcy.

Folks, we've built a gigantic house of cards that is going to make a really loud noise as it collapses. Duck and cover. Duck and cover. And a very timely passing of that bankruptcy law (lobby big wet kiss) eh? Thanks MM for the link...

Many struggling with debt - Rising gas prices, interest rates make it harder to keep up on bills

Rising interest rates and higher gasoline prices are putting the squeeze on consumers' budgets, and many are finding it harder to keep up with their bills.

Credit counseling agencies say that consumers are coming in droves seeking help."My phones are going crazy," said Howard Dvorkin, president of the non-profit Consolidated Credit Counseling Services Inc. in Fort Lauderdale, Fla. "Consumers are carrying an exorbitant amount of debt, and they don't have any savings to fall back on if things don't go right."

The Federal Reserve's decision last week to raise short-term interest rates for the 17th consecutive time will boost yet again borrowing costs for consumers, likely prompting more delinquencies on credit card bills as well as on auto loans and mortgages.

"People refinanced (their mortgages) six months or a year ago, so the 'house bank' is empty," Williams said. "Most can't go back and tap their home equity again.