Thanks to the bankruptcy reform of 2005, brought to you by too big to fail organizations, debt collectors and Joe Biden via his lobbyist son, which makes filing for protection very difficult, expensive and a general waste of time for most as you must qualify now filings plummeted. That is until now while the economy is supposedly on the mend there is one number on the rise that is unquestionable, bankruptcies.

More Americans filed for bankruptcy in October than in any other month since the 2005 reform. The number of bankruptcy filings increased by 25% to 131,200 during October 2009 as compared to October of 2008. So far during the year of 2009 there have been a total of 1.2 million bankruptcy filings which surpasses all of 2008 1.1 million filings. Clearly this is an issue as there are so many claims that we are rebounding or turning the corner in the economy. If that were true why is it that the bankruptcy and employment numbers continue to climb, to disturbing levels.

It is also not just people filing for protection, but businesses as well with the number climbing some 30% from October of 2008. The most common form of bankruptcy for businesses is chapter 11 which rose the most in 4 months to 1,327 in October alone. Again, with things looking so good, according to economists, Politian’s or anyone else with a vested interest in talking up the economy, why is it that these businesses are failing? Clearly it is because things are not as rosy as we are being told.

To illustrate how bad this situation is going to get the estimate for Americans filing for bankruptcy this year is 1.4 million, there is only 2 months left in the year. Given how difficult it is to file for bankruptcy this shows how difficult the real world is for regular Americans. It makes me wonder if any economist or politician is paying attention to any of this at all. This is no longer a Republican or Democrat issue, but an American issue. While the banks got their bailouts and bonuses I think the regular people deserve something, besides a 1,990 page health care bill that no one will read and will do squat to improve anyone’s life.

With numbers like these and with, more than likely, an ugly employment report due this Friday it is time to get our priorities straight. The people need jobs, but the question is how do we get them since government spending destroys wealth and doesn’t create it. I would suggest some sort of long-term tax credit for hiring employees, not a onetime $3,000 who cares credit, but something with teeth. Better yet, let’s take TARP back and just cut everyone a check, they are not going to ever get rid of it anyhow, so if we are going to pay for it we might as well get the actual dollars.