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November Consumer Credit Soars, Driven By Student And Car Loans: 95% Of All 2012 Consumer Debt Funded By Uncle Sam
SSDM: just like in October, and September, and August, and so on, November consumer credit saw a decent pick up of $16 billion, well above the expectation of $12.75 billion, above the $14.1 billion in October, and the third highest monthly print of 2012. And if this was driven even remotely by actual short-term consumption demand, it would likely be a good sign, as it would imply consumers have more faith in being able to repay their credit cards. Sadly, of the entire $16 billion jump, only $817 million, or 5%, was based on a jump in revolving credit. The real "growth" came as usual courtesy of Uncle Sam handouts, solely in the form of auto and student loans, which accounted for a whopping $15.2 billion of the increase in consumer debt, the second largest jump in the year, second only to the $18 billion in January. And as everyone knows, student loans are already on fast track to forgiveness (full forgiveness in 10 years if one works for the government), as will be the case for those NINJAs who buy GM cars using government loans. For all of 2012, a whopping $130 billion of the $137 billion total has been in the form of government handouts. In other words, nearly 1% of 2012 GDP has been funded by Uncle Sam in the form of (dischargeable) loans which everyone else will be responsible for, until nobody at all is responsible.
Expect non-revolving debt (i.e., student loans) to literally explode once it becomes better known that the Obama administration is preparing a wholesale debt forgiveness program as reported previously.
Source: G.19
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And the ponzi scheme continues......
Profitably!
http://www.reuters.com/article/2013/01/08/us-aig-lawsuit-government-idUS...
No surprise. Remember when we were told that Fannie Mae and Freddie Mac only purchased safe loans and were helping the economy grow?
HOW ABOUT 30% RISKY LOANS PURCHASES BY FANNIE AND FREDDIE FROM 2001-2008?
http://confoundedinterest.wordpress.com/2013/01/08/government-mortgage-e...
i'll quote from the greatest philosopher of all time... the honorable 'Homer J. Simpson':
"The war is over, and the future won. The past never had a chance, man."
Old man on the street says the plumber, baker, carpenter, small business owner & teacher is going to end up paying for it all
Wankin' Bankers
Well the real dependents, in D.C. & Wall Street, all on the government teat
What do they know, know, know?
Go to work in some government office or fancy high rise
And vacation down off the coast of Monaco, ooo yeah
And there are too-big-to-fail or state employed winners, and there are Main Street losers
But they ain't no big deal
'Cause the simple taxpaying man or woman baby pays the thrills
The bills, the pills that kill
Oh, but ain't that Amerika for you and me
Ain't that Amerika somethin' to see baby
Ain't that Amerika home of the free, yeah
Little pink houses for you and me, ooo
Ooo yeah
Terrifying highs, dizzying lows, and creamy middles
Thank you, sir! May I have another????
So much for being the responsible type. Once again I'm the greater fool.
<Where do I sign up for some of that NINJA sweet sauce?>
The corruption has now tainted everything.
I suppose if you can't beat them ,you had better join them.
Get a very long gold spoon.
Going Galt is hardly an option any longer.
That's the point... the cost push inflation tame period will last longer than your canned hamz stash... slowly eating away. Basically, it's designed to stop the socioeconomic status of every person in place... and then grind out the lot in a war of attrition... logic being that with the cantillon effect and pre-existing wealth buffer, some will benefit supremely by the political environment that eventually takes shape. Wealth is purely a relative measure.
If you don't have it in place now, it's only going to be more difficult going forward. Best of luck.
machoman, i'd be interested to hear your opinions in some sort of article on here
@MachoMan
"Wealth is purely a relative measure."
Indeed. I remember a study from a decade or three ago wherein it was shown that your typical Vietnamese, uh, 'peasant' (sorry, can't think of a better word right now) who had two water buffalo was every bit as content with his socioeconomic status as someone in the first world who had significantly more (and more modern) material possessions and income than his neighbors. In Vietnam, it was unusual to own even a single water buffalo, so the individual with two felt (and was) considerably better off than his neighbors.
I take your vagueness about the topic I am to write as a compliment...
At present, about the only thing that interests me academically is the gun control debate... I suspect it would take me a couple of months to write a decent book though. And no telling how many additional months for finer refinements... I really don't think anyone can do the topic justice with a standard length article.
As for economic issues and their relationship to politics, I'm really at a loss to beat some of the masters that are often posted here... from kyle bass to aldous huxley... jefferson... von Hayek... rothbard... They've already said EVERYTHING and in a much better way than I can.
The way to tell the bullshit artists from the real deal is the language they employ... if you can't understand it, then neither can the speaker. Some of these folks have actual knowledge how everything works... (the most interesting point is that folks like kyle bass, who manage the most money, actually know the least... but with the list, he's in great company, so I mean it as a compliment... I don't think he's a guru, but he does research well and seems to have enough humility to be able to actually accept it and certainly "gets it").
For really, really pressing and important issues, I keep coming back to this video... it summarizes one huge aspect of our present economic (and moral) crisis in very plain terms. http://www.youtube.com/watch?v=4PQrz8F0dBI I think Mako tends to focus on "the equation" a bit too much... as the battle between capital and labor may actually be a more fundamental and important "debate" (imposition/whipping). Each of the issues focus on the problem of stability of the system, but one moreso on resource constraints as a limiting factor and the other moreso on psychological constraints as a limiting factor... although the two are virtually completely intertwined and often indistinguishable.
In short, I appreciate your compliment, but I simply don't have the time necessary to dedicate to drafting one worth reading... at the present. I do hope to contribute to the website at some juncture with a worthy article, but not anytime in the near future.
Agreed, wise dude.
Being the responsible one means that you're going to be the one holding the bag when it all comes crashing down.
Responsibility is for losers. Crank up the credit card and let someone else pay for it.
There's always the "Cut Yourself for Justin Beiber" campaign which would at least goose up ER visits... and maybe help out with Darwin Awards ....and minimize carbon footprints
Everything has a silver lining, so to speak.
Hey, how about a "Cut Paul Krugman for Justin Beiber" sub-meme for the campaign?
Throw in a Wookie shag style bathroom toilet seat cover?
Spiderman towel?
Imitation platinum memorial coin set?
You should enroll in the new university I'm starting" "Gold Standard University." You borrow $250K in the student loan program, the University buys gold with it and hands you a bunch of textbooks to read. After four years you graduate and receive a solid gold diploma (worth much more than $250K) for successful completion of the program. What you do with it is your matter.
But yet the media spins this as something incredibly positive for the economy....shocking!
Responsibility is overrated.
For he that fucks the dog today gets to fuck the dog another day.
This thread is beginning to make sense...
+1, that made me snort - pair that twisted Confuscianism with a lucky number and you've got a great fortune cookie saying.
Ummmmm......does the dog get any say in the matter? :)
In the event your elected representatives go into full-on batty-aunt-in-the-attic mode and hand out checks like its much confetti, the responsible action, to you, your loved ones, and those who rely on you, is get the hell over there and get yours.
Before the checks start bouncing.
A little help: how do I tell full-on batty-aunt-in-the-attic mode from the way they spend now?
Get yer diploma AND a neeeww car!
In the words of the immortal Steve LIESman, "they can't do that"
correction: "immoral"
"Hence why my short treasury position that I've had on for years now (triple leveraged with a long on Vix) has been such a slam dunk homegamers! Hahahahaha...you all have no idea....no clue...really. I'm such a winner...I can't believe people have no idea how easy it is to make money trading this market...
Exceedingly bullish.
screw paying the mortgage-I'm going to buy a depreciating asset like a car. my moron neighbor(laid off for 4 years/wife is an accountant/1 kid in day acre so he can fuck off all day) bought 2 new vehicles last year (which i mentioned at the time to my wife that it was a dumb idea) for probably $75K and he was over the other night bitching that they can't afford groceries. plus- they're trying to refi their house and they keep bitching the appraiser is wrong and I'm thinking your house is not worth shit. I want to choke the guy but his plight amuses me so I just nod my head and say "That's too bad". I'm tired of feeling sorry for anybody-like Santelli says-we're all adults.
Your neighbor is a good, patriotic muppet that deserves nothing but our support! Hopefully his wife will be laid off and they can transition to food stamps so that they can finally have groceries.
Your neighbor is livin' the dream, man! Wake the fuck up! This is a colonial vestige of the House of the Red Shield, where debt slaves are born, kept in the dark & fed shit all their lives, so they can be harvested like mushrooms to support the fractional reserve fiat Ponzi. Join the herd, man up, and shop like a real Amerikan Hero.
Think about getting a degree in ethereal alchemy from Everest University. Bill the tuition to Uncle Sam.
Now, quickly, before you get all depressed, go do some retail therapy with the wife! And for God sakes, charge it!
"If I had a trillion dollars....."
"If I had a trillion Federal Reserve Notes..."
Never tell anyone about your problems.
Most don't care, and the rest relish it.
I thought you don't tell anybody about your guns,gold,silver and cash.
No problems here. AMEX keeps sending me love letters in the mail begging me to become an AMEX cardholder . I feel the love
I have relatives who blow their money frivolous crap and then ask to borrow so sometimes I have to make up problems so they can feel better.
Oh. Where do I start?
Lets see...
Never mind.
look at the good news, we're coming off the lows.
alright maria
Trillion $ coin bitches...Trillion $ coin
Yeah... But why platnum? http://media.techeblog.com/images/worldslargestpizza.jpg
I agree.
Why platinum.
I fondly remember France back in the early 60's as a kid. Watching the night people do shit like swallow swords, huff gasoline and blow big balls of fire, etc.... and we'd give them these flimsy little shitty coins made from tin and aluminum which weight naught and felt like toy money.
So let's just quit the fucking charade and do it right.
Just take a fucking Magic Marker and write $1,000,000,000,000 over the $1, have Timmah, da Bernak and Krugman autograph the fucker and be done with the shit.
Who the fuck is kidding whom?
Just can't wait the financial follies if Krugman gets a cabinet position in Obama's harem.
Unlimited debt and borrowing.
I don't think they'll go that route, as Krugman is way too valuable as a Keynesian Sophist of the highest order to be sacrificed as a failed policy wonk. That's what obscure tools like Bernanke are for.
Still more room left to run higher today... get on board the good ship BTF-ingDIP!!
These 3:30 ramps are comforting. I come to expect them and miss them when they are absent.
Yea, though I walk through the valley of the shadow of stagflation, I will fear no evil: for the bernank art with me; thy qe and thy zirp they comfort me...
Best laugh all day sir.
I guess I'm the dummy.... here I am taking every debt coupon dollar I can spare and buying real money (hint. - shiny and Golds little brother) while I should b making myself a debt slave by buying a car or vying for a worthless education which among other self destructive ends will instruct me in the ways of how to become a wage earning servant of the international bankers fractional reserve debt based paradigm..... Man i'm screwed up...
Guess what, guys.... some of that is me! I got a lease through Ally on a GM car.
Sorry, but I was told to buy American. Now I'm told it's gotta be non-governmental American. Oops. Missed that last part. I was going to buy a Ford but I couldn't get the Ford salesman to call me back. So, I bought a GM. If you have a credit score over 800 you can get a pretty good rate, too (2.9%). And it's all just fiat anyway, so who cares what the rate is! ;)
It's actually not a bad car. Not a good car, but not a bad one either. Doesn't really matter to me- I think about my daily driver about as much as I think about my refrigerator. Just a transportation appliance.
Hope you at least got a Corvette
I assume you will be changing your name from NoDebt to MoDebt.
:-)
Man am I glad this all happened before the kiddos headed off for college. Now I'll just blow the cash on something of value *wink* and have them take out student loans out the wazoo, including a loan for cars that can be paid with those great student loans *rolleyes*
May as well get in on some of that Obammy hope-n-change while they're giving it away like candy.
There's just no point in being frugal or living within your means any more. You'll just get raped with taxes and they will be redistributed to those "more deserving". Not sure why I bother working - maybe I should try to get some of that disability largesse.
Damn straight, everyone else is doing it. As soon as they roll off the 2-year unemployment line, they hop right onto the SSDI gravy train. Cash Cow, bitche$. Only the stupid, honest losers work for a living.
I think it's "Only the stupid losers work for an honest living". That's the cultural tuna we are all being slapped in the face with repeatedly.
And the scary thing is, the bulk of it hasn't even started yet...20% avg annual commercial health insurance premium increases, USPS is bankrupt, Amtrak is bankrupt, Fannie/Freddie are bankrupt, FHA is bankrupt, SS is bankrupt, FDIC is close, Federal government and a good portion of states are bankrupt but cover it up by floating more bonds. The list goes on and on and forgetting my retirement, what advice do we give our college age kids? Do we suggest they get dual citizenship in Singapore? Tell them not to get tied down with houses, cars, loans and families? Paying taxes is for suckers increasingly...it used to be patriotic but ask Gerard Deperdieu and he will tell you there is a limit.
95% consumer debt in 2012 [Government Funded]. The U.S.S. Turd is so far down the shitter "Roto Rooter" ® would have trouble saving her.
Borrow now...never pay later.
Pass any losses onto the innocent.
It's the new paradigm.
Yo Yo Yo We be lovin' our chrysler 300's and dodge chargers yo! Gots to be pimpin' yo
With the all the nonsense, silly disinformation and manipulation around these days, I was almost prepared to think this was somehow GOOD...
your avatar is almost great, if only it was a bigger pic
Why would anyone go to college if they didn't get a new car to drive there in?
my moron neighbor(laid off for 4 years/wife is an accountant/1 kid in day acre so he can fuck off all day) bought 2 new vehicles last year
This is actual the new normal in America. People will not impart austerity on themselves until someone does it for them. Your example is not unique or isolated, it is everywhere!! We know a couple that the wife is a teacher and makes 92K hubby makes 30k at best. They always have 2 brand new vehicles and a big trailer to go camping 2 weeks everyear. They got caught last year putting a new roof on the house during the summer and almost went broke. The house has been paid for 10 years and was basically a gift from hubby's Aunt. She is retiring in a year. Never a moment giving to save a thing. When the great re-set comes many many people will look back in lament. BY then its to late
Why should they when the goverment is going broke and their money will be worthless?
Long live the american consumer! To think some people actually said the american consumer is dead. Braindead,yes absolutley,but not clinicly speaking.
Why go to the university when you can find basically anything for free online? Khanacademy.org is an excellent start.
Because it's way more fun to go to college for 6 years and have any expenses incurred forgiven later.
Note there was no congressional discussion of these new, even more forgiveable loans.
It was yet another soverign degree from King Obama.
Give the masses free stuff now. Let the bills come after his reign is over.
95% of all lending funded by a government in debt 16.5 trillion. Anyone know why the banks aren’t lending to customers? Here is your answer, because they don’t have to take any risk, they lend their excess reserves to the Government and borrow from that same government for free. How is that for a long term business model? Right, you got it, it is good for the jewish bankers and fucked for the taxpayers!
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