The demise of the easy credit economy means that Circuit City no longer can depend upon consumers maxing out on their credit cards to buy that new HDTV. With the company’s announcement today of Chapter 11 bankruptcy, we are seeing the further restructuring of the economy, which will come whether the government wants it to or not.

Perhaps the politicians can learn a lesson here, especially as they line up to “bail out” the utterly destitute “Big Three,” which should be permitted to go into bankruptcy.