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Federal Government Injects Near Record Amount In Student Loans In January As Consumer Credit Rises
Minutes ago the January Consumer Credit report was released. It was expected to post an increase of $14.7 billion. Instead it rose by $16.2 billion. On the surface this would be great: consumers are spending more, levering up confident in the future, etc, etc. Alas, as always in the New Normal, the story was below the surface. Specifically, of the $16.2 billion rise, a tiny $106 million was due to revolving, or discretionary spending credit card, debt. The balance, or 99% of the total, was non-revolving debt, best known as student loans, and less known as GM NINJA car loans. And here is the scary math: in the past 12 months, of the $153 billion in total consumer credit increase, just $6.4 billion was in revolving credit. The balance: student and car loans.
And where it gets even worse is breaking down the sources of credit. Because not only is the Fed supposed to monetize virtually all the US debt with a positive duration, it also has no choice but to directly fund the consumer debt.
Sure enough, in January, the biggest by far source of debt, was the Federal Government, which funded some $26 billion of new student and car loan, which as everyone knows, will never be repaid.
This was the fifth highest US government consumer credit injection in history.
The math again: of the $153 billion in total debt sources in the past 12 months, 70% has been handed over by the Federal Government.
Source: G.19
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Yet again the new generation is getting financially raped. College bubble anyone?
they are rookies compared to Ben Almighty
So next time somebody asks you how does Bernanke Fed Fiat get into the wider economy..
it ain't Obama printing it in the basement of the White House.. he's borrowing it from Ben, buying cars and indenturing youngsters.
Better student loans and car loans than high interest credit card debt...
Negative - Unseen costs are weaving Black Holes with such imaginary consolation.
Why buy a used car when you wreck a new one?
Where do I sign up for this Government Car Loan? That's the only way I'm buying a new car. They're so fucked up, I'll drive it five years before they come get it.
Even in my weirdest dreams I never saw the USA transforming into a central planning economy.
Where have you been since Dec 23, 1913?
He just hasn't dreamt since then. Everyone gets tired of nightmares. Myself included.
So when is the big bash for the Fed?
Certainly we will be having a huge centennial celebration in honor of all that the Federal Reserve Act and bank has done for us, won’t we ?
Where have I been since 1913? Well . . . mostly latent in the gene pool.
The Soviet States of America. This won't end well.
Even in my wierdest dreams I never saw myself wanting to leave this country, but I do now, and I don't think there's anywhere else to go that hasn't been tainted by the same disease.
Plus I'm not nearly wealthy enough to do it. I'm not Simon Black, International Man of Mystery.
I used to want to go to New Zealand and live a simpler life. Better now to just hang out in the Wallowa Mountains in Oregon.
There's no place left - this is the New World Order.
Capital controls will find you, and if they don't skynet will.
Der's neber ben a bedder time 2 go2Kollage!
I am a P-henix-an.
I like when the Phoenix University commercial is on right after the Forever Lazy commercial. Kinda says it all.
Id wuz eeder uNiverZity of P henix, Tom Vu or Tom Vu II.
Derp a Derp.
I know I can get a car with a student loan but I want a house.
You just need Life Insurance for the house
No problem: Your car will soon be your house!
Holy shitttttt, Batman!...........
i sure would not want to be 22YO again
If you're 65 and older, you can look forward to death. If you're under 65, you can't really look forward to anything.
I guess that's too bad for you then ain't it?
shit i really thought we were getting back to borrowing again.. it's all FEDeral governemnt... centrally planned alright.
poor kids... led to temptation and their debts won't be forgiven.
What if the people killed all of the banksters?
Nothing said "debt paid" like a creditor 6 feet under.
what has been, will be again, there is nothing new under the sun .. so said someone in the bible who's name I can't spell
who cares? debt is debt and debt is good. pile it on, baby. when it blows, it means ben gets to print even more money. which is probably his goal.
As Chuck Shumer said "Do your job Ben", I believe it's the government goal for him to print. No way they can pay off the debt without today's dollar equalling a dime. Pretty soon the homeless will carry around a tin can that says "minimum donation $100 please".
I don't blame people for going back to school, and getting loans for it.
That's what the MSM and Corporation tell them to do: get a degree, and you will be hired.
"Submit to serfdom, sign here" - that's the corporate propaganda line.
Of course, these suckers are getting cold decked for the most part.
I live in a college town and eavesdropping is a favorite passtime for me. They're all going to grad school, whether or not they were planning to originally because they are being told they have to to get a job. Which turns out to be true most of the time for the one's who tried to get a job with a 4-yr. What pisses me off is what these kids are being led to believe they will get paid with any degree - crazy numbers for degrees in French or Psychology. Another thing I learned lately (and I don't know if it applies to all grad school loan $$) but one gal told me that her grad school loans start accruing interest as soon as she receives the money, no deferrment and of course she didn't know at what rate - "I don't really want to know". Yikes.
"......but one gal told me that her grad school loans start accruing interest as soon as she receives the money, no deferrment and of course she didn't know at what rate - "I don't really want to know". Yikes."
In the interest of national security her interest rate is on a need to know basis. And she most certainly doesn't need to know.
Sincerely,
Eric H. Holder, Jr
The Attorney General
Bananamerica
Yes, one type of loan has intrerest accruing the minute they hand you the check. No deferment. Bend over.
Lots of fools going for "-Studies", which indicates the pondering of something tendentious and vague taught by leftists, generally. I ran into a day in the park the other day who was going for one of those, the job market being soft right now you know. She'd of course graduate into a hiring boom to match the depths of the bust.
The trifecta is when a student not only gets moar student loans, but a new car and three new credit cards to boot.
#Winning
<God bless Bananamerica>
This is called crossing the streams, in ghostbusters parlance.
Three Bubbles in one blow,
Zimbabwe Ben is the beast at what he does.
January Consumer Credit - Beg, Borrow Or Steal
http://chartistfriendfrompittsburgh.blogspot.com/2013/03/january-consumer-credit-beg-borrow-or.html
Gotta help the UAW and university employee constituencies, plus feed the Hope of youth voters. That's the way the left rolls.
And its what they are buying with these student loans......not all of it is going to some professor....its play money too....and I bet 40% of them are scam loans......NSNC..no school no class loans....just the application that says Minority applicant and shazamm..you get a loan.....they are all planning on Obama wiping the slate clean at some point..because an education is a right and should be free to a leftist...I expect Obama to do this in his last year....
It's "free" in Europe, and Europe is worshipped by the left for free stuff.
I know of a person who used his/her student loan for a Hawaiian vacation.
I know one guy who back in 1995 went out and bought a Ford Probe sportscar! He had plenty left over for tuition as the loan was in excess of $20,000 and he'd just get another the next year. Problem is, shortly after we graduated he owed something like $60,000. I feel out of touch with him so I never did hear what happened to that loan.
I can easily see the day when our gubmint forgives student loans for those with low incomes.
There are student loan forgiveness programs already in place for various government employees. Advice now being given to graduates unable to meet student loan debt obligations is to go and get a govt job and work there for the term required to get the debt forgiveness.
Govt jobs are forever, not temporary.
the job isn't really forever. at some point the fat pension kicks in. the bill to the taxpayer is forever.
Between this and tax rebates we've found the source of January's increased consumer spending!
Student loan debt has become its own TBTF. The Debts will be forgiven, you know, because if they aren't it could hurt the economy.
It won't hurt the economy...it would hurt a banker and we can't have that!
They'll never be forgiven. It's money owed to the federal government. They won't let you default on them. Repayment will be based on income, otherwise known as income tax surcharge.
It's the stealth way of raising taxes. And the best part, the loan guarantees don't hit the debt ceiling balance.
These debts are not going to get repaid. They will be defaulted on or inflated away.
The currencies are getting destroyed right in front of your eyes. But for now there's not much we can do but observe, document, and protect ourselves.
This is the system in which we live, meaningless electrodollars floating all over the place.
Nonsense. People will just be on a deferment paying off interest and nothing toward the principle until they die.
Students are only following the TBTF banks - the rot is through the entire society - everyone is milking it. Because they know they will never have to pay the money back. So might as well LIVE LARGE
Need to revert to the old bankrupcy laws or this is just a reworked TARP style bailout of the banks.
computed that student debt was increasing at an annual rate of 73% in January...