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Consumer Credit Rises $6.09 Billion In December, First Revolving Credit Increase Since August 2008

Tyler Durden's picture




 

After it was already confirmed that December was a subpar month for US retailers (whether snow can be blamed or not is irrelevant), and less money than expected was spent (it's ok, we no longer need the US consumer to lead the economy - the Fed is buying all the debt, it can also buy everything else), we finally get our first glimpse as to how even the week consumer performance in December was funded. Two words: "Charge it." Total US Consumer Debt in December rose by $6.09 billion December, on expectations of a $2.4 billion increase (and $4 billion higher than November's revised $2.022 billion). Yet what is most notable is that while Non-revolving loans increased by $3.8 billion (the lowest in the past 4 months), revolving loans posted their first increase since August 2008, increasing by $2.3 billion. Is the US consumer so tapped out that it is time to go to the credit card once again? And if so, does this mean that the drop off in excess reserves by over $180 billion compared to where they should be has been due to consumer lending. If that is the case, we may be far closer to Bernanke losing control of the trillions in excess reserves (and a surge in "velocity" or however one calls this archaic construct) than we had expected previously.

 

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Mon, 02/07/2011 - 16:34 | 941300 HungrySeagull
HungrySeagull's picture

Finally the unemployed, uncounted and homeless have finally recieved thier Ipods under the bridges and now have decided that since all benefits have run out for good, they probably decided screw it, charge it! I will eat and feed my family tonight.

 

The other side of the coin might be those who have sat on credit cards so long watching metals like silver zoom upwards. They may have decided charge it! and take possession of the Silver to sit on it a while.

 

There is profit in them there Credit Cards, interest rates be damned.

Mon, 02/07/2011 - 18:30 | 941631 Financial_Guard...
Financial_Guardian_Angel's picture

This is nothing more than the seasonal change typical every Jan/Feb.

Credit card usage goes up, and credit scores go down for a few months until people pay off the Christmas debt.

If this persists until April or May, then we may have something here...

Tue, 02/08/2011 - 07:24 | 942419 Pegasus Muse
Pegasus Muse's picture

"There is profit in them there Credit Cards, interest rates be damned."

JPMorgan/Chase has a credit card with an introductory 0% interest for 18 months.  It's their  Slate (Visa) card.  There is something particularly satisfying about having JPM finance my Ag purchase.  

I will pay off the balance in full right before the grace period ends .... if JPM is still in business. 

Mon, 02/07/2011 - 16:35 | 941301 Cognitive Dissonance
Cognitive Dissonance's picture

People just don't want to admit that Bernanke is a serial black out drinker and we're all passengers in the hearse he's driving.

God help us all. He's headed for the cliff.

Mon, 02/07/2011 - 16:37 | 941311 SheepDog-One
SheepDog-One's picture

Good visual.

Mon, 02/07/2011 - 16:52 | 941358 Nacho.Libre
Nacho.Libre's picture

Well, when I go, I want to go peacefully in my sleep, like my grandfather, not screaming and yelling as the car went careening off a cliff, like his passengers.

Mon, 02/07/2011 - 16:56 | 941372 Cognitive Dissonance
Cognitive Dissonance's picture

We are ALL passengers in his car.

The only difference is that some of us had the good sense to sit way in the back so we can use all those obese bodies piled in front as some sort of a cushion when we decelerate from 100 MPH to 0 MPH in 100 microseconds.

It's not the fall that's going to kill us, it's the sudden stop.

Mon, 02/07/2011 - 17:02 | 941391 william the bastard
william the bastard's picture

On a long enough timeline the survival rate for everyone drops to zero.

Tue, 02/08/2011 - 06:33 | 942398 Treason Season
Treason Season's picture

On a long enough bus the survival rate for some is better than others. 

Mon, 02/07/2011 - 17:50 | 941540 Nacho.Libre
Nacho.Libre's picture

We could always just jump out of the moving vehicle and tuck and roll.  Sure, we'd get a bit scraped upped and bruised, but at least we wouldn't go plunging off the cliff. 

Mon, 02/07/2011 - 16:36 | 941307 SayTabserb
SayTabserb's picture

You've already figured it out, The Bernank will just buy up the bank receivables and add them to the stash. The Bernank can play whack-a-mole until the Fed owns everything since only Peak Oil, which might limit the number of toner cartridges which can be manufactured, can slow him down, and if he has to, he'll take up printing dollar bills by hand.

Mon, 02/07/2011 - 16:39 | 941317 SheepDog-One
SheepDog-One's picture

People have said 'screw it, Im not paying my mortgage and Im going to rack up new credit cards till the wheels fall off, screw next month Im eating this month'.

Every week I get about 5 new Chase or other credit card offers.

Mon, 02/07/2011 - 16:52 | 941363 Dr. Richard Head
Dr. Richard Head's picture

HA to the credit card offers. I defaulted and settled for pennies on the dollar with JPM (8-9 months ago) and they are sending me credit card offers again.  LMAO

Mon, 02/07/2011 - 17:08 | 941415 william the bastard
william the bastard's picture

Your nick name is not meat for nuthin

Mon, 02/07/2011 - 17:19 | 941444 Dr. Richard Head
Dr. Richard Head's picture

Meat for nothing indeed.  One of my exgirlfriends used to call it Mr. Meat.

Mon, 02/07/2011 - 16:40 | 941320 Misean
Misean's picture

Probably just first time users of the new food stamp cards getting confused and whipping out the wrong card in the check out line. It'll get sorted presently.

Mon, 02/07/2011 - 16:43 | 941326 LongSoupLine
LongSoupLine's picture

the cycle of failure continues

Mon, 02/07/2011 - 16:43 | 941330 docj
docj's picture

One last hit off the pipe.

Mon, 02/07/2011 - 17:52 | 941547 Miss Expectations
Miss Expectations's picture

What can I say?  Yes, we can (fool most of the people, most of the time).

Mon, 02/07/2011 - 16:44 | 941332 cosmictrainwreck
cosmictrainwreck's picture

and this startling headline means....exactly what?

Mon, 02/07/2011 - 16:48 | 941345 buzzsaw99
buzzsaw99's picture

Buy V, BTFD. Buy junk bonds. That is all. [/not serious advice]

Mon, 02/07/2011 - 16:49 | 941347 plocequ1
plocequ1's picture

It and other bad news means.. BTFD

Mon, 02/07/2011 - 16:50 | 941352 Greater Fool
Greater Fool's picture

Green shoots, baby!

Mon, 02/07/2011 - 16:50 | 941355 Mike2756
Mike2756's picture

Amount financed for auto purchases is still declining, bigger downpayments or cheaper cars?

Tue, 02/08/2011 - 00:30 | 942240 HungrySeagull
HungrySeagull's picture

$50,000 cream puffs rot.

$2,000 dollar beater restored with parts from junker yard runs for the next ten years.

I have two older vehicles and intend not to buy a new car for at least 5 more years.

Mon, 02/07/2011 - 16:54 | 941366 Encroaching Darkness
Encroaching Darkness's picture

Nothing more than a few Christmas presents going on the card for a month or two, only for convenience.....

Only for a month or two.... I hope.

Mon, 02/07/2011 - 16:57 | 941373 apberusdisvet
apberusdisvet's picture

Add that to the bubble-icious student loan situation and the REALLY poor will be a vast majority within a year; when people are hungry and homeless, they will follow willingly.  Hmmm.  I wonder what the real end game is?

Tue, 02/08/2011 - 00:33 | 942241 HungrySeagull
HungrySeagull's picture

A student loan that cannot be discharged except by repaying. You will need to either die and have the life insurance pay it off or otherwise discharge it to paupers burial.

 

If millions fail to repay on time every month (no job, no money, no phone to be hounded with etc.) then the enormous weight of the loans are gonna hurt coming down.

Mon, 02/07/2011 - 16:57 | 941374 kentfinance
kentfinance's picture

A turkey and a few presents for the kids, x300 million people. no surprise.

Mon, 02/07/2011 - 17:31 | 941484 SheepDog-One
SheepDog-One's picture

Right, some trip charges, a few presents for Christmas, of course an IPhone on the credit card, and thats all she wrote.

Mon, 02/07/2011 - 16:58 | 941375 Silverhog
Silverhog's picture

Well, my balance on Visa is largest in years. We had to use it to pay bills, not the beginning of a good story. I'm sure many others are forced to do the same.

Tue, 02/08/2011 - 00:37 | 942244 HungrySeagull
HungrySeagull's picture

I ran a balance buying armor, weapons, ammunitions parts for the weapons and training classes along with fees for auto repairs, food etc.

The previous winterstorm I charged 300 dollars for two chains sets to be delivered by air for one vehicle and the shipping was 50 dollars. Overnight was 1000 dollars.

 

OTOH, the energy bill for electric and nat gas for last month was maybe 65 dollars total if that. I am literally pouring hundreds of dollars into the credit card each month and have not been charged interest yet.

 

Once the credit card is paid off, then there isnt anything else to do except retire the student loan in a year or two.

 

Then no more debt. All cash and a wheelbarrow buys a loaf of bread and milk by then.

Mon, 02/07/2011 - 16:59 | 941384 AnarchoCapitalist
AnarchoCapitalist's picture

I have received a large amount of 0% APR offers over the last 6 months.

 

A scenario that makes more sense, is that the average American is opening up another line of credit with a 0% intro APR and transferring his previous credit balance to the new card. This would create a net increase in credit while allowing for weak consumer sales numbers.

Mon, 02/07/2011 - 17:01 | 941389 kentfinance
kentfinance's picture

bingo

Mon, 02/07/2011 - 17:08 | 941413 docj
docj's picture

I survived 4-years of graduate school (1996-9) doing precisely that.  The balances got a little bigger with each transfer, but in 3-plus years I never paid a penny of interest.

Had to pay the piper eventually, though.  And boy, did that suck!

Tue, 02/08/2011 - 00:38 | 942247 HungrySeagull
HungrySeagull's picture

We grabbed a 9 month 0% card from Chase some years ago, transferred something like 15,000 dollars off a 22% card and had it paid off in 7 months flat.

Damned if we never heard from Chase or anyone else ever again. Chase did not earn one red penny carrying 15,000 dollars.

Tue, 02/08/2011 - 06:52 | 942404 AnAnonymous
AnAnonymous's picture

Wonderful US. Now US citizens are offered 0pc loans to sweep their 20pc loans out.

Once a thief...

Wed, 02/09/2011 - 02:46 | 945683 HungrySeagull
HungrySeagull's picture

Ah yes. But when you have to pay 230 for interest and about.. 140 for principal pay down at 22% or whatever the hell it was back then while your money pit of a house and crappy swipe the card because we have no cash life style adds a few more dollars each month to the minimum... You are a slave to the credit card company.

 

Chase showed up they did warn us up front that if we miss even one payment or still have a balance after 9 months interest becomes 39.9 apr and we worked 5 jobs and ate oat meal and PBJ for 6 months to get rid of it.

 

Never again. To this day I cannot stand Peanut Butter or Jelly.

Mon, 02/07/2011 - 17:04 | 941386 FLUSA.com
FLUSA.com's picture

Interesting thing happend recently that had me take a bit of a step back.....some kid started playing with my kids at my house on Saturday....He had a cell phone and my kids started complaining that they don't have one...I said "I don't want to pay for your cell phones"......then the new kid said "Your not on food stamps?"  And I said "NO"....then my kids said "Whats food stamps?"..... to which the new kid said "They get you free food and allow you to get free cell phones"  ...so I guess people on food stamps can some how get free cell phones?  I am sure the kid isn't making it up.  Cell phones are a right? Why do I even try to fight the good fight? 

Mon, 02/07/2011 - 17:09 | 941411 Rogerwilco
Rogerwilco's picture

Yeah, the bummicans who lay around in the parks on sunny days smoking dope and drinking all have a phone. Social services hands them out and pays for the air time so these fine citizens won't miss a call from potential employers -- LOL.

But hey, they're not smart phones, at least not yet...

Mon, 02/07/2011 - 17:23 | 941452 Dr. Richard Head
Dr. Richard Head's picture

One of my daughter's friends recently came over to our home to visit my daughter.  This friend's family lives in a trailer home, is constantly shopping, on food stamps, and their ten year old daughter has a cell phone. 

I guess this is where this https://www.safelinkwireless.com/EnrollmentPublic/home.aspx

comes into play. 

SafeLink Wireless is a government supported program
that provides a free cell phone and airtime each
month for income-eligible customers. Learn More

Fuck that bullshit.

Mon, 02/07/2011 - 17:32 | 941490 FLUSA.com
FLUSA.com's picture

This is amazing to me...why stop at a cell phone....what if they miss an email from a potential employer or a rich Nigerian General needing a place to deposite 8M USD?  How long until they get laptops with free internet???  Who the fuck knew about this?  I bet the people on free food and free cell phones don't want it getting out...

Mon, 02/07/2011 - 17:39 | 941511 Dr. Richard Head
Dr. Richard Head's picture

It cracks me up really.  I have a neighbor who's wife has been on umeployment for over a year (not looking for a job either) and her husband would mock me all of the time on how I gave the credit card compan ies the finger.  Now that he has be called to court by a credit card company he wants to know how I got the credit card companies to settle.  Fuck him.  Go it alone baby, go it alone.

Tue, 02/08/2011 - 00:40 | 942249 HungrySeagull
HungrySeagull's picture

It is bullshit. You would be surprised at what mountains of bullshit to behold as you cross one path of trial and tribulations in your financial life while others lounge around on easy beach living on nothing except sunshine and hormone starved women.

Mon, 02/07/2011 - 18:07 | 941583 cramers_tears
cramers_tears's picture

Ya'mon.  Me drinkin' an' smokin' da ganj means da gubment got gib me da phone plan, mon. Iya need get me ganj calls.  Kinda lahk dem bank'r monees but for me ganj calls nstead. If da bank'rs get der free, me ganj calls got be free too, mon.  Ahyree, - whatacuntree, ef yer poor ganjer or da rich banker da gubment giv u free!  Da US streets - dem lined wi'gold, surree!

Mon, 02/07/2011 - 18:49 | 941687 MachoMan
MachoMan's picture

My wife, as a mental health professional, has to go into homes of a large number of people.  The vast majority of her clientele are indigents and on governmental assistance.  Virtually all of those on assistance have smartphones and a few even have multiple flat screen televisions...

Of course, her actions are generally thwarted as they try and avoid her like the plague.  One of the issues is that if they get more mentally stable, etc., then often times their disability checks or other forms of assistance go out the window.  Further, if she clears them, then they no longer get a ridiculous amount of prescription medications (xanex, etc.).  In other words, the system is set up to incentivize them to remain in their socioeconomic wonderland.

No, obviously bums do not have iphones...  but, I'm not sure there are 43 million plus people living under bridges either...

Tue, 02/08/2011 - 00:41 | 942251 HungrySeagull
HungrySeagull's picture

I bought a flat screen for 200 out of a pawn shop about 6 hours after it was placed on the shelf. It had everything and less than a year old.

Asked the pawn owner why that thing got in there, he said that the previous owner needed a tank of gas to get some beer (Dry county) so he pawned it.

I own it now. Retail in that time for the same model was about 1000 dollars at walmart.

Mon, 02/07/2011 - 23:00 | 942135 Ludwig Van
Ludwig Van's picture

 

FLUSA said, "Why do I even try to fight the good fight?"

1) Because you have to live with yourself (a clean conscience is a dear prize); and 2) because your kids are watching and listening to everything you do and say.

It's called *the good fight,* not *the easy fight* -- as you know.

 

 

Mon, 02/07/2011 - 17:00 | 941388 juujuuuujj
juujuuuujj's picture

This ties in very well with another ZeroHedge article about how debtors will go out with a bang, and not a whimper, because they're hyperleveraging. This is a great lecture by prof. Steve Keen, which includes an explanation of this short period of optimism after the first wave of debt deflation (which is then followed by an even bigger deflation):

http://www.debtdeflation.com/blogs/2011/01/17/my-session-at-the-aea-2/

Mon, 02/07/2011 - 17:04 | 941393 Rogerwilco
Rogerwilco's picture

Looks like there may be some truth to the rumors that last quarter banks, after some prodding from the Fed, increased credit card limits. With the mortgage refi ATM out of service, they had to do something, and apparently here is their solution.

Mon, 02/07/2011 - 17:02 | 941394 KickIce
KickIce's picture

but we can always depend on low food and energy costs.

We're walking a tightrope right now with the New World order safety net.  Question is, how many Americans will welcome it.

Mon, 02/07/2011 - 17:05 | 941403 Great Depressio...
Great Depression Trader's picture

The reality is that people no longer paying on their mortgages AND living rent free is providing a HUGGGEEE boost to the CONsumer eCONomy. Classic deleveraging i mortgage debt is true recovery. Banks dragging their feet to conduct foreclosures and evictions is not. Eventually, the borrowers in default will get booted meaning they will have to pay for housing costs. Just in the past several months I have learned of numerous people that have stopped paying on their mortgages. A big part of the "recovery" has come from the millions of home squatters across the country. In addition, there are millions of people collecting unemployment benefits for up to 99 weeks while working under the table.

Tue, 02/08/2011 - 00:43 | 942253 HungrySeagull
HungrySeagull's picture

Not to mention those who are free and clear and hiring contractors to make repairs to obselete parts of the home to carry them through the next 20 years like I am trying to do.

Mon, 02/07/2011 - 17:05 | 941405 ivars
ivars's picture

Feed them the debt to keep them illusory equal.

Mon, 02/07/2011 - 17:11 | 941423 william the bastard
william the bastard's picture

My shredder cant handle all the offers. Need to upgrade.

Tue, 02/08/2011 - 00:43 | 942255 HungrySeagull
HungrySeagull's picture

Desiel fuel and burn the lot.

 

Or sign up for a ID protection service and tell them to halt the pre-offers for you.

Mon, 02/07/2011 - 17:13 | 941426 Jim in MN
Jim in MN's picture

Dear Dr. Ben:

Please place the POMO bonds on my credit account, then purchase them back at a premium every few weeks or so.

Wake me when it's over. 

Remember: leave the premium on the bond repurchase as a net gain for me.

Sincerely,

An Unrich Nobody

Mon, 02/07/2011 - 17:25 | 941462 FLUSA.com
FLUSA.com's picture

sorry but that deal is strickly reserved for Rich Somebodies......leaves us both out....   :(

Mon, 02/07/2011 - 17:50 | 941542 Dr. Richard Head
Dr. Richard Head's picture

I like to call the Fed's discount window every now and again and ask if I can get access to it.  Haven't had much luck yet -

http://www.frbdiscountwindow.org/borrowing.cfm?genid=14&desc=Borrowing&url=borrowing.cfm

Make sure you call your respective district.

Mailing Address
Credit Risk Management
Federal Reserve Bank of Cleveland
1455 E. Sixth Street, 4th floor
Cleveland, OH 44114
Office Hours Monday - Friday
8:00 a.m. - 7:00 p.m., ET
Discount Rates Discount Rates   General Phone (216) 579-2000 Toll-Free Phone (888) 719-4636 Fax Number (216) 579-2205 Emergency/After Office Hours Doug

Banks

(216) 235-9241 Todd

Berardinelli

(216) 409-6494 Toby P.

Trocchio

(216) 870-9143 Administration Doug

Banks, 
Vice President

(216) 579-3059 Todd

Berardinelli,  Manager

(216) 579-2922 Loan and Payment Request Toby P.

Trocchio,  Coordinator

(216) 579-2955 Chris

Lentz

(216) 579-2892 Kathy

Lucic

(216) 579-2097 Ann

Makohon

(216) 579-2416 Sue

Prior

(216) 579-3017 Eric A.

Polansky,  (after 3:00 p.m., ET)

(216) 579-3036 Collateral Receipt and Transfer (Book-Entry/Physical) Toby P.

Trocchio,  Coordinator

(216) 579-2955 Chris

Lentz

(216) 579-2892 Eric A.

Polansky

(216) 579-3036 Collateral-Agreements, Arrangements and Inquiries Toby P.

Trocchio,  Coordinator

(216) 579-2955 Chris

Lentz

(216) 579-2892 Eric A.

Polansky

(216) 579-3036
Mon, 02/07/2011 - 20:40 | 941949 gookempucky
gookempucky's picture

The docter is in the house

Mon, 02/07/2011 - 17:49 | 941537 Drater
Drater's picture

Any ideas how one would go about financing their child's college education using credit cards and then defaulting on the payment? Obviously minimum payments would need to be made during college enrollment. How can this be accomplished while protecting personal assets (savings, retirement, public pension, 529 plan, home equity)?

Mon, 02/07/2011 - 19:46 | 941807 sabra1
sabra1's picture

if you live in your car, how the heck are they gonna find you?

Mon, 02/07/2011 - 20:13 | 941897 Ned Zeppelin
Ned Zeppelin's picture

Not bad. Better than defaulting on a student loan - those never get discharged in bankruptcy. I'd say you can kiss those savings, home equity etc. goodbye though. those assets are all exposed. Pension probably safe, IRAs, 401ks.

Overall grade B+: Nice scam! Of course, it might make more sense to either earn the money or not spend it on tuition you can't afford. Might be an option.

Mon, 02/07/2011 - 20:56 | 941979 Drater
Drater's picture

I started saving for my son's education he was born with the goal of getting him through college without student loan debt. We are on track but I wouldn't mind keeping his 529 for other purposes while screwing the TBTFs. I carry no balances but my CITI card has a $58K limit which would cover a good chunk of the anticipated tuition.

I could care less about my FICO score because this will be the last house I own and I will have no other need to borrow money.

 

Mon, 02/07/2011 - 22:28 | 942098 plane jain
plane jain's picture

Is that house in a state with a broad homestead exemption?

 

Texas's homestead exemption has no dollar value limit and has a 10 acres (4.0 hectares) exemption limit for homesteads inside of a municipality (urban homestead) and 100 acres (40 hectares) for those outside of a municipality (rural homestead). The rural acre allotment is doubled for a family: 200 acres (81 hectares) can be shielded from creditors in Texas for a rural homestead.[1]

Both the Kansas and Oklahoma exemptions protect 160 acres (65 hectares) of land of any value outside of a municipality's corporate limits and 1 acre (0.40 hectares) of land of any value within a municipality's corporate limits. Most homestead exemptions cover the land including fixtures and improvements to it, such as buildings, timber, and landscaping.

 

Mon, 02/07/2011 - 23:34 | 942185 hardmedicine
hardmedicine's picture

move to Texas, purchase the largest house you can buy using all of your assets, homestead that house, establish residency, charge the credit cards up during the schooling paying all excess in personal income back into the mortgage during the 4 years then take the bankruptcy.  The house is shielded in homestead and no other assets will be available for attachment.  Of course you will be getting a menial job for the 3 or 4 year payoff of the chapter 13 if you can't qualify for the Chapter 7. 

Then you can sell your million dollar home and resume your previous life debt free.

Mon, 02/07/2011 - 18:47 | 941679 buzzsaw99
buzzsaw99's picture

people are buying groceries with CCs:

 

http://www.bbc.co.uk/news/business-12360031

Tue, 02/08/2011 - 00:46 | 942258 HungrySeagull
HungrySeagull's picture

Yes indeedy they are.

At the stroke of midnight first of the month the Uncle Sam Food stamps via Credit cards get swiped.

Visit a walmart super center the last day of the month about 30 minutes to midnight and you will witness the true horror of just how dependent the masses have gotten.

Then look at the shit that they are hauling home. It aint gonna be the basics either.

Mon, 02/07/2011 - 18:55 | 941702 mynhair
mynhair's picture

Student debt rules!

Support the Ponzi:  go get a new edication at your local FEMA camp.

Mon, 02/07/2011 - 20:07 | 941883 Ned Zeppelin
Ned Zeppelin's picture

Listen up - to the extent it is a genuine tic up in consumer credit card debt in December, it is all about Christmas. Mom and Dad still want to provide gifts to the kiddies, this having been drummed into their heads by the MSM for so long it is an involuntary reflex to find a way to fund those gifts, even by running that balance back up after some hard fought reductions. The flesh is weak in December, but toughens up in January when the bills arrive. Look for this number to resume its downward trend in January, I say. (Except of course to the extent that it is Wall Street execs paying "on credit" for a month or 2 after getting those fat year end bonuses.)

Mon, 02/07/2011 - 20:15 | 941902 Blank Reg
Blank Reg's picture

I've got my credit cards maxed out on shiny white metal. I'll be happy to use my Bernanke Bucks to pay them off while I watch my real muny SOAR!

Mon, 02/07/2011 - 21:07 | 942001 StychoKiller
StychoKiller's picture

Talk to Max Headroom lately?  GO Blank Reg! :>D

Mon, 02/07/2011 - 20:45 | 941947 chump666
chump666's picture

wow the consumer has not got an equity draw-down (housing) to offset  credit binge.  rates going up, maxed out cards going in bins.  bank writedowns ahead.  beautiful.  obama tries to stretch the debt ceiling and china goes nuclear.

do worry Europe you are still in there, when that Trichet/ECB/Germany face food riots, coming summer, droughts etc

Mon, 02/07/2011 - 20:51 | 941968 XRAYD
XRAYD's picture

With incomes shrinking, how will the consumer pay his credit card bill?

 

Just pay the minium, and max out.

 

Back on the treadmill again ... till default and writeoffs! 

Mon, 02/07/2011 - 20:52 | 941972 XRAYD
XRAYD's picture

With incomes shrinking, how will the consumer pay his credit card bill?

 

Just pay the minium, and max out.

 

Back on the treadmill again ... till default and writeoffs! 

Mon, 02/07/2011 - 21:53 | 942053 Quaderratic Probing
Quaderratic Probing's picture

Easy to charge it if your homeless theres no address for the bill.

Mon, 02/07/2011 - 22:23 | 942093 plane jain
plane jain's picture

Leave the country.  Move to Canada and your credit history will be a blank slate.

Tue, 02/08/2011 - 00:48 | 942261 HungrySeagull
HungrySeagull's picture

Ahem, you will be scheduled for a final exit interview with a means test. Once you go to the second and last interview prior to leaving the USA for good, you will be assessed about half of your worldly assets for taxes to uncle sam.

 

I aint going. I am staying right heah and helping those I can help and preparing the best I can to be in a position someday when those others can return the favor.

Tue, 02/08/2011 - 06:23 | 942394 sabra1
sabra1's picture

please do not come to canada! we already have all these mexicans crossing over, and we do not even have any taco bells! stay in the US, max out your credit cards, get a new car, no money down, and make zero payments on anything! screw the fed, as they screw you!

Wed, 02/09/2011 - 02:51 | 945691 HungrySeagull
HungrySeagull's picture

I delivered loads into Canada and enjoyed the CDN .68 to USD 1.00 rate and the good hospitality and good food. Always sad to leave through US customs waiting for the next trip back to Canada.

 

That was over a decade ago. Now your trucking company cannot get a driver to go to canada without a .15 cent per mile premium and a baby's ass wiped clean no stink TWIC, Background, checks, paperwork pre-approved and so on and so forth.

 

At least in Canada you can get some real tea and some good foods not availible in the lower 48.

Just one thing about Toronto. Dont let yourself get fat and obese, you need good running shoes and stay fit enough to out run the knifers at night downtown.

Tue, 02/08/2011 - 01:30 | 942302 Wage Slave 927
Wage Slave 927's picture

"Is the US consumer so tapped out that it is time to go to the credit card once again? "

Nope, this is just a sign of the folks at the top of the food chain living large once again. The Wall Street virtual recovery rolls on.

Tue, 02/08/2011 - 01:42 | 942310 cosmictrainwreck
cosmictrainwreck's picture

BINGO. I didn't see any break-down by type of goods, class of stores or anything....wonder who's got those stats?

Tue, 02/08/2011 - 01:58 | 942322 ak_khanna
ak_khanna's picture

Deflation is spreading around the world despite the efforts of the central bankers by trying to avoid it by printing currency.

Inflation is caused when the sum of credit outstanding and currency in circulation increases in comparison to the goods and services available and deflation is vice versa.

The credit outstanding worldwide is shrinking at a much faster rate than the rate at which the central bankers are printing money. The money being printed is just being used to roll over previous debts and is not contributing to job or small business creation which can actually cause inflation by giving a large portion of the population an increased purchasing power.

Moreover deflation is a natural process and is a result of increased productivity which ultimately benefits the majority of population by bringing down their cost of living.

http://www.marketoracle.co.uk/Article24581.html

Tue, 02/08/2011 - 04:55 | 942379 ivana
ivana's picture

definitelly agree... whole game is unsustainable but somebody still have strong interests to push it further. over the cliff. until worlds totaly divide btw free and elite slaves ... and than years later we all forget, hug and start all over again but slaves will start this time from below bottom

Tue, 02/08/2011 - 03:27 | 942354 Blank Reg
Blank Reg's picture

Max sez:  H..H..H..H..Hi   the...the...the...the...the...there!

Tue, 02/08/2011 - 05:23 | 942385 savagegoose
savagegoose's picture

i got another card to transfer  credit over for 6 months 0% interest but the fine print said after the  zero period it goes up to cash rates thats %22. fuck me ill have to roll it back to the old card in 6 moonths.

Wed, 02/09/2011 - 02:57 | 945694 HungrySeagull
HungrySeagull's picture

There are thousands of credit cards online all asking for your business.

 

As the times between transfers and interest rates get tighter, say down to 3 months or even 6 weeks, break your chunk into smaller cards and get a magic jack phone plugged into a crappy pawn shop Laptop to recieve a phone number for all of those credit card companies to call you to collect 24/7 Since you dont have audio, you never know that activity is happening.

 

When the volume of letters pile up, do what they do in London, buy a thick book in a second hand book store, stick the pile into a fireplace and burn it slowly to stay warm and save your cost of energy.

 

And maybe one day, just collect two months worth of past due billings from dozens of credit cards all demanding 67% interest and entire balance due now, go to the lawyer and bankrupt yourself.

 

Wait a few months to a year starting over with a clean slate.

 

Aint america great!

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