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97% Of February Consumer Credit Is Student And Car Loans

Tyler Durden's picture





 

The releveraging deleveraging continues. While US consumers barely dare to touch their credit cards, as they did in February when just $533 million in revolving consumer credit was added, they continue to take advantage of Federal largesse to take out student and car loans for the maximum amount possible, and as expected in February of the $18.1 billion in total credit taken out, a whopping 97% was non-revolving, or mostly student and GM loans (recall that now one can "finance" a car using their shotgun as collateral). To show just how dramatic the shift toward Uncle Sam as bank of only recourse for the US consumer has become, consider that in the past 12 months, of the $158.8 billion in total consumer credit issued, just $6 billion is credit card based. The remainder: debt that will never be repaid because those who take it out use it to finance such things as their education in vocational school (and iPads, tattoos, lap dances, semiautomatic guns and booze of course), as well as various GM cars that amortise by about 100% the second they are driven off the car lot.

Spot the student and car loan components of total credit:

And guess who the biggest and really only net source of consumer credit has been in the past few years.

 


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Fri, 04/05/2013 - 15:22 | Link to Comment lolmao500
lolmao500's picture

The recovery will only be here when 97% of consumer credit in a month are hookers and blow.

Fri, 04/05/2013 - 15:28 | Link to Comment kaiserhoff
kaiserhoff's picture

Nicely done, Tylers,

     but what's the percentage to illegal aliens?

Fri, 04/05/2013 - 15:33 | Link to Comment McMolotov
McMolotov's picture

That shit's loco, ése!

Fri, 04/05/2013 - 15:39 | Link to Comment Skateboarder
Skateboarder's picture

Emily Haines sings it better (and cuter) than you or I can.

"Buy this car to drive to work. Drive to work to pay for this car."

http://www.youtube.com/watch?v=opz1USz25Do

Fri, 04/05/2013 - 15:44 | Link to Comment McMolotov
McMolotov's picture

She's so damn hot. Her voice makes me feel kinda funny, like when we used to climb the rope in gym class.

Fri, 04/05/2013 - 15:46 | Link to Comment lolmao500
lolmao500's picture

Climb the rope in gym class? Today it's probably illegal for the childrenz safety!

Fri, 04/05/2013 - 15:56 | Link to Comment Tijuana Donkey Show
Tijuana Donkey Show's picture

Can't handle the weight........

Fri, 04/05/2013 - 16:01 | Link to Comment debtor of last ...
debtor of last resort's picture

Self fullfilling channel stuffing. A bankers wet dream.

Fri, 04/05/2013 - 16:04 | Link to Comment NoDebt
NoDebt's picture

Wanna make Americans lose weight?  Make all subsidized housing split-level.  I grew up in a split-level house when I was a little tike.  You're ALWAYS going up and down stairs in those damned things.

Hey, seriously, it's no stupider than banning sugary drinks over 16 oz.

 

Sat, 04/06/2013 - 03:13 | Link to Comment Parrotile
Parrotile's picture

"Staircase exercise" resulting from a 2-storey home is worth the energy equivalent of up to 16 calories per minute.

Over the course of a year, that's a lot of energy that would have been stored away as blubber. Easy exercise too - no special equipment needed!

Fri, 04/05/2013 - 16:04 | Link to Comment 11b40
11b40's picture

What's a gym class?

Fri, 04/05/2013 - 16:16 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

I recently learned that my kids' highschool now offers gym class online. 

Fri, 04/05/2013 - 16:29 | Link to Comment TeamDepends
TeamDepends's picture

Mental push-ups are hard!  Can we take eHome-ec instead?

Fri, 04/05/2013 - 17:21 | Link to Comment forwardho
forwardho's picture

I got me a E-pick

I got me a E-shovel

Ima gonna sit at my computer, and mine me some of them there bits of E-coins I heard  tell about down at the ZH room.

Fri, 04/05/2013 - 17:39 | Link to Comment Tijuana Donkey Show
Tijuana Donkey Show's picture

Do they do click-ups or what? If it's not on the standardized tests, they don't care about teaching it. 

Fri, 04/05/2013 - 21:35 | Link to Comment WmMcK
WmMcK's picture

And here's a "car tune" for us old fogies:

http://www.youtube.com/watch?v=mu86OP-O3mY

Still gives me a thrill.

Tue, 04/09/2013 - 00:55 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

What makes them illegal, the central controller state that also dictates your fiat currency to you, so that gold and silver are also illegal money?

Think about that, a second.

Illegal money.

Illegal immigrants.

"regulated" markets rather than free markets.

You picking it up yet?

Fri, 04/05/2013 - 15:36 | Link to Comment ZerOhead
ZerOhead's picture

I still remember the days when you used to open up a new bank account and they would give you a new rifle or shotgun as a gift. Funny... but you don't see that happening much anymore.

And today when you go for a new loan they take the gun back...

Fri, 04/05/2013 - 15:36 | Link to Comment augustusgloop
augustusgloop's picture

What a brilliant way for the Federal Government to disarm the populace- trade in your guns for cars + indenture yourself to a Goldman subsidiary. 

Pretty soon Goldman will set up subsidiary land holding companies in the South and "hire" these debt slaves to pick cotton. 

Fri, 04/05/2013 - 16:38 | Link to Comment _ConanTheLibert...
_ConanTheLibertarian_'s picture

Banks in the EU will happily point the gun at you...

Fri, 04/05/2013 - 15:28 | Link to Comment Abraxas
Abraxas's picture

Nay, bread and water.

Fri, 04/05/2013 - 15:34 | Link to Comment Groundhog Day
Groundhog Day's picture

Take out a loan, go into debt so that you can Get a college degree and apply after that highly sought after mcdonald's cashier position

http://news.yahoo.com/wanted-mcdonalds-cashiers-college-degrees-204344742.html

Fri, 04/05/2013 - 15:39 | Link to Comment Hal n back
Hal n back's picture

ok--so the route to gun control is to control consumer credit. but then, if people can't buy guns and ammo, the only strength in economy is gone.

Fri, 04/05/2013 - 15:44 | Link to Comment ekm
ekm's picture

LOL

Fri, 04/05/2013 - 15:45 | Link to Comment rogeliokh
rogeliokh's picture

Nothing is matter, everything is Bullish, Dow down just slightly.
Nice job Bernank and Co, but we need more QE, thanks.

Fri, 04/05/2013 - 15:47 | Link to Comment azzhatter
azzhatter's picture

decent boner pop on the barbaric relic today

Fri, 04/05/2013 - 15:51 | Link to Comment Fish Gone Bad
Fish Gone Bad's picture

You can tell how good GM cars are by looking at the cars the employees (at GM) drive.  Its not so much about loyalty as it is about getting real value.

Fri, 04/05/2013 - 22:12 | Link to Comment tarsubil
tarsubil's picture

Fuck, at least there will be real collateral. What the fuck is the collateral on all this worthless student loan debt? I can't wait for the day when our corrupt horseshit self-congratulatory university system implodes.

Fri, 04/05/2013 - 15:23 | Link to Comment CH1
CH1's picture

Oh yeah, this will turn out well.

Fri, 04/05/2013 - 15:23 | Link to Comment jal
jal's picture

You can't get blood out of a stone.

Tue, 04/09/2013 - 00:46 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

NAE laddie, with new SlaveTech 2000(c)(R) technology, you can now extract 5 grams of good slave blood for every 100 pounds of slave-tard-lard PER HOUR! Just infuse the standard RFID tracking chip, connect to skynet(tm) drone-system for compliance-enforcement & before you know it, your heat-emitting, weight-displacing slave-tards will be useful at the very least for some energy extraction & blood-donations (topped up after with Monsanto Corn high-fructose syrup!). Even better, many slave-tards as yet believe they can and should slave away further for iGoodies so for every 100 hours and/or 1 L of slave-blood extracted, we'll now include A NEW $3.00 iShitYouNot gadget for anything uNeverNeeded and the slave-tard will work an ADDITIONAL 10,000 hours in exchange who receives it!

Now that's what I call a "virtuous circle" of investing!

Brought to you by VampireSquid Industries in co-operation with the We're-Your-Fucking-Overlords party of Murrika(tm).

Fri, 04/05/2013 - 15:22 | Link to Comment razorthin
razorthin's picture

Goobermint loan?  You are just begging for a drone.

Fri, 04/05/2013 - 15:31 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

 

 

ADVERTISEMENT

__________________________________

There has never been a better time
to buy or lease a new GM!

Hurry now, damn it, to your nearest GM dealer
before inventories increase even more!

2013 GM Yukon Denali AWD
403 HP
13 CTY / 18 HWY

Nicely equipped for only
$67,185

 

Easy credit available through Ally Bank!

On*Star tracking and cabin recording included free for 6 months,
then you pay to be tracked and recorded.

 

 

Fri, 04/05/2013 - 15:34 | Link to Comment ZerOhead
ZerOhead's picture

It's like Obama said...the fuel efficiency of the new vehicles is simply amazing.

Fri, 04/05/2013 - 15:40 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

13 CTY / 18 HWY

"Building the cars Americans want to drive."

Fri, 04/05/2013 - 15:44 | Link to Comment Bearwagon
Bearwagon's picture

Yeah! Drill! Baby! Drill!

/sarc off

Sat, 04/06/2013 - 00:11 | Link to Comment Bunga Bunga
Bunga Bunga's picture

Let's frack America.

Fri, 04/05/2013 - 15:45 | Link to Comment ZerOhead
ZerOhead's picture

Okay then...

I don't suppose you are going to believe that this is due to environmentally responsible car-pooling either...

Fri, 04/05/2013 - 16:02 | Link to Comment NoDebt
NoDebt's picture

It's the big ramp-up in public transportation, right?  Am I right?

And by public transportation I mean your feet.

Sat, 04/06/2013 - 03:23 | Link to Comment Parrotile
Parrotile's picture

Those figures are MPG I assume.

In the 1960's my Grandfather drove a Morris Traveller. 1100cc engine. 35 - 40 MPG then (when petrol was somewhat cheaper)

Even the "performance cars" such as Jaguar were returning better than 25 MPG on vehicles capable of 100 MPH ++

So, my obvious question must be - what's gone wrong???

(Incidentally, the Travellers were mechanically simple but durable - 110,000 miles on the one engine and gearbox. For a 1950's design that was as good a durability as we see today)

Fri, 04/05/2013 - 15:36 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

Can I get my escalade with marble countertops, and a law degree?

Fri, 04/05/2013 - 15:54 | Link to Comment Fish Gone Bad
Fish Gone Bad's picture

Why yes you can!  They will even throw in a baby's arm holding an apple.

Fri, 04/05/2013 - 16:48 | Link to Comment RafterManFMJ
RafterManFMJ's picture

I'm more of a Fisker fan myself.  Every time I'm out in mine and I encounter a rain storm, I shit myself. Is that ozone I smell? Am I about to be immolated? Fisker should give out a 3-pack of brown underwear to everybody who buys one of their mobile death machines.

Fri, 04/05/2013 - 17:47 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

A lot of gasoline is saved by having no job to drive to.

Fri, 04/05/2013 - 16:02 | Link to Comment Urban Redneck
Urban Redneck's picture

Unlesss there has been a 100% increase in average fuel efficiency, the chart would imply a 50% reduction in real GDP under the brilliant leadership of Bernanke/O'Bummer/Reid/Boner & Wicked Bitch of the Wes(i.e. before adding back the FEDs printing and distribution to their buddies)

Fri, 04/05/2013 - 15:42 | Link to Comment Poor Grogman
Poor Grogman's picture

Just a thought, could falling motor fuel consumption be partly explained by internet shopping?

 

Something I have long suspected...

Fri, 04/05/2013 - 15:43 | Link to Comment ekm
ekm's picture

Outstanding.

 

Fri, 04/05/2013 - 15:45 | Link to Comment css1971
css1971's picture

Why on earth would you put all wheel drive on a car which clearly can't go off road?

I Googled the thing and there isn't a single photo on Google images which shows it off road... Driving over a field for example, a bit of sand maybe. Even the photos in a "wilderness setting"... it's on tarmac ... Though positiioned as to give a hint of offroadiness about it.

No wonder japs are owning the market.

Fri, 04/05/2013 - 15:48 | Link to Comment Bearwagon
Bearwagon's picture

Why on earth would you buy a fortress-like halftank like that thing above instead of a car that does what it's good for, anyways ...

Fri, 04/05/2013 - 16:09 | Link to Comment Urban Redneck
Urban Redneck's picture

Don't bust on fortress like halftanks (?), some us need them, but that one just SUCKS from an engineering standpoint.  

They were making more reliable, more durable, more powerful, and more fuel efficient engines almost twenty years ago (but of course the tree-fuckers and their lobbyists know better).  Devolution at it's Detroit finest.

Save the earth, hang a tree-hugger from one of their beloved trees (and throw in a banker to balance the load on the poor tree). 

Fri, 04/05/2013 - 16:34 | Link to Comment noless
noless's picture

I do find it funny that my 1000$ near twenty year old beater truck with intermittent engine problems gets better mileage than that things top range.

Fri, 04/05/2013 - 16:32 | Link to Comment DosZap
DosZap's picture

Why on earth would you buy a fortress-like halftank like that thing above instead of a car that does what it's good for, anyways ...

 

 

Simple, one SAFTEY, and two, if you have to haul around 6-8 people a lot.Me I want to be ONE of the biggest things at an intersection, if some dumb ass decides he can make that light, or runs it. Around here, it happens lot.

I rarely drive a lot anymore,(maybe 3,000 miles a year) but I kept my 2000 Ford Explorer, since it was bought  new, and I have been rear ended 2x's,once by an Asian lady in a NEW Accord, at 65mph.(she was not in critical condition,not able to speak much), but her new Accord's front end/engine/tranny was up to the windshield, and totalled.

Damage to my Explorer, around $3,500.00.

I was sitting still on a MAJOR interstate Hwy, she never even saw us stopped.

Second time I was also at a red light, and was ass ended by a local kid who was in a Brand  NEW Porsche 928, me?, $1,500.00 damage, him?, $35k+,and not feeling real well.

IF you have kids, you understand WHY.

Fri, 04/05/2013 - 16:50 | Link to Comment RafterManFMJ
RafterManFMJ's picture

Go to bed old man!

Sat, 04/06/2013 - 03:30 | Link to Comment Parrotile
Parrotile's picture

Or just buy a Volvo . . .

Pensioners in their Tanks - the lifebloood of all Motorcyclist horror stories (incidentally been there, seen it, but thanks to the excellence of the training provided by Essex County Constabulary, managed to avoid it, unlike others.)

"I'll be all right - sod everyone else"

Fri, 04/05/2013 - 16:15 | Link to Comment NoDebt
NoDebt's picture

Listen, if people wanna buy them, that's their business as far as I'm concerned.

I used to own a Buick Electra deuce-and-a-quarter that was set up to be a "sleeper".  I street raced it down on Front St. in Philly for $50 a throw when I was a kid.  Running bottom 11s in that tank was mind-bending.  Ask anyone who lost to me.

Yah, I know street racing was not the brightest thing I ever did, but the point is it was MY car.  I paid for it along with the gas and nitrous that got put into it every weekend.  Ask me if anyone NEEDS a car like that.  Obviously not.  But it was my choice to make.  And somehow, strangely, I still like to make my own choices. 

I would advise you against going down the "who needs that?" path.  Someday, somebody is going to ask the same question about something you really like.

Fri, 04/05/2013 - 21:24 | Link to Comment W74
W74's picture

Yet plenty of welfare scum driving around in Escalades, Yukons, Denalis and Tahoes.

Fri, 04/05/2013 - 16:22 | Link to Comment RobD
RobD's picture

I have a 2001 Model year Yukon with AWD(bought used for no were near that price lol) and it is a joke off road. I have had to pull it out of the snow three times with my 97 Jeep Wrangler.

Fri, 04/05/2013 - 18:37 | Link to Comment ThisIsBob
ThisIsBob's picture

Rain, sleet, snow, ice.

Fri, 04/05/2013 - 21:20 | Link to Comment W74
W74's picture

Most of the people I see on the side of the road during snowstorms are SUV drivers, not car drivers (who are more cautious) or pickup drivers (who can actually get through the stuff).

Fri, 04/05/2013 - 16:09 | Link to Comment DosZap
DosZap's picture

hedgeless_horseman

Loved it!.

Funny thing is, we now have MORE crude and nat gas avail than in many a year, consumer use is way down,(with 90 million on their ass, is that a wonder?),and our refiners and oil companies export 28% or more of our refined gasoline and diesel fuels.

 

Fri, 04/05/2013 - 17:50 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

Oil data is about the most obfuscated there is.

That export of refined gasoline is because only gulf coast refineries can deal with thick Venezuelan oil.  They get the Ven oil in, refine it and ship the gasoline back to Ven.  

Then you have the stuff going on with C+C, crude plus condensate.  Used to be the crude/condensate ratio was 95/5.  The shale "oil" coming out is more like 10/90, inverted the other way.  But the barrel count stays the same.  Why does this matter?  Because crude contains 40% more joules than condensate.  It pushes trucks.  Condensate doesn't.

Fri, 04/05/2013 - 17:10 | Link to Comment forwardho
forwardho's picture

Will we be told the reduction in use is result of gov't mandated fuel economy?

The once in a planetary "cheap" energy source is no longer, nor ever will be cheap again.

Long on hunter gather skills.

Fri, 04/05/2013 - 15:28 | Link to Comment Kaiser Sousa
Kaiser Sousa's picture

"O'bama gonna pay my car note...."

hey, LIESmman said that todays "no jobs being created" number could just be an anamoly....

see, what ya'll trippin off of???????

and look, the Dow is off it lows and still...  - ah fuck off little CNBC gremlins whispering in my ears...............

Fri, 04/05/2013 - 15:32 | Link to Comment Abraxas
Abraxas's picture

That was MDB whispering.

Fri, 04/05/2013 - 15:43 | Link to Comment Croesus
Croesus's picture

Obama Note? I sense a sequel to this:

https://www.youtube.com/watch?v=tpAOwJvTOio

Wonder who the Obama Note lady will be.....Janet "Yellen", maybe?

 

Fri, 04/05/2013 - 15:33 | Link to Comment hswalj
hswalj's picture

The second of my two kids finished college in 2008. Both exited school with no debt and obtained no loans and no scholarships. If they were enrolling now, I'd load them up to the max with student loans because I think there's a good chance our President will forgive them and forgive their loans before he leaves office.

Fri, 04/05/2013 - 15:34 | Link to Comment koaj
koaj's picture

i would just as soon not send them. rather my kids be apprentice to a tradesman somewhere. learn how to fix things and build things instead of learning how to push paper

Fri, 04/05/2013 - 16:05 | Link to Comment DosZap
DosZap's picture

i would just as soon not send them. rather my kids be apprentice to a tradesman somewhere. learn how to fix things and build things instead of learning how to push paper

 

I agree, the Average M.D.GP practitioners earnikngs for a year is now under $140,00.00 a year.The average SELF employed Electrician, or Plumber makes double that, and most is OFF books and done on a cash basis.Who is the Winna?

Fri, 04/05/2013 - 16:40 | Link to Comment lenitivelea
lenitivelea's picture

Seriously? Sure he'll forgive them, if you serve ten years in our glorious military...

Fri, 04/05/2013 - 20:57 | Link to Comment W74
W74's picture

Back in '05 when I signed up (stupidly) and the military just needed a shitton of warm bodies for a "surge" to Iraq, they were writing off 100K worth of loans.  Of course you had to forego your GI Bill for that back then.  THEN in 2009 everyone became eligible for the newest GI Bill anyway.  Back in those days you could have been a gang member with tats on your face and knuckles and you could get a waiver for all that, just like with mortgages.  Funny how things work.  Hell in those days didn't even have to get 31 on the ASVAB (proving you had an IQ of 70) and yep, there were waivers for that too, just like with proof of income or even the right to legally work in this country.

I remember one guy from Wisconsin who had 108K in loans and had 100K of it paid off the day he signed, and just paid off the rest.  All forgiven. Then he got and used the newest GI Bill to go for a master's degree and make bank.  The fuck?  Is anyone responsible anymore.  I also recall that that asshole never deployed and faked injury the whole time.  If I could do it over again I would too though.  Gosh I was a dumb kid, at least I saved the vast majority of my money while in.  Dumb. Dumb. Dumb.

Fri, 04/05/2013 - 15:33 | Link to Comment lolmao500
lolmao500's picture

Portuguese Constitutional Court rejects two articles from Government budget - cd have huge implications for application of (no) cuts policy.

Fri, 04/05/2013 - 15:49 | Link to Comment lolmao500
lolmao500's picture

The Portuguese constitutional court just ruled that 1.1 billion euros in cuts were unconstitutional.

Fri, 04/05/2013 - 15:41 | Link to Comment q99x2
q99x2's picture

Students rule. Open home purchases with student loans. The kids have to live somewhere.

Fri, 04/05/2013 - 18:06 | Link to Comment ebworthen
ebworthen's picture

"In the poison'd entrails throw.—
Toad, that under cold stone,
Days and nights has thirty-one;
Swelter'd venom sleeping got,
Boil thou first i' the charmed pot!
Double, double, toil and trouble;
Fire burn, and caldron bubble."

Shakespeare - The "Scottish Play"

Ben Bernanke Version:

In the poison'd gray matter throw -
Economist, that under Gold & stone,
Days and nights, has ninety one;
Sweated money printing got,
Boil thou first, i' the debtors pot!
Bubble, bubble, toil and trouble;
Money burn, and economy bubble.

Fri, 04/05/2013 - 15:46 | Link to Comment Bearwagon
Bearwagon's picture

It is a not so well known pass to wealth, to save money by not wasting it for cars ...

Fri, 04/05/2013 - 15:49 | Link to Comment yogibear
yogibear's picture

Need to arrange those fake loans for school and collect 1/2 million for purchasing hard assets. Then leave the country.

Also having a nice $67,000 GM SUV stolen and sent overseas  for a commission and re-titled helps. Get the replace and leave the country. 

It's amazing to think like a bankster. They cook the books, robo sign/back date mortgages.

Fri, 04/05/2013 - 15:58 | Link to Comment icanhasbailout
icanhasbailout's picture

additional liquidity now being added in underpants everywhere

Fri, 04/05/2013 - 16:05 | Link to Comment Black Markets
Black Markets's picture

What a load of old shit.

 

Where's the beef?

Fri, 04/05/2013 - 16:11 | Link to Comment mt paul
mt paul's picture

where's the horse ?

Fri, 04/05/2013 - 16:16 | Link to Comment Canadian Dirtlump
Canadian Dirtlump's picture

How the fuck else are they gonna get to school? lmao..

 

When I was in University I was either rolling in a 79 fairmont, 302 2v, no block heater, 1983 ford ltd2 wagon which leaked everythign but gas, inoperable reverse gear, 1970 chevelle malibu 350 4v...

Fri, 04/05/2013 - 17:36 | Link to Comment pashley1411
pashley1411's picture

I'm appreciating the consistent position of the Amerika Sheepublic.   Having voted for debt slavery, and acting the part.     Amerika, hella ya!

Fri, 04/05/2013 - 18:06 | Link to Comment Praetorian Guard
Praetorian Guard's picture

What I want to know is why did the Direct Loan Services sell my student loan to a 3rd party - EDFinancial?!?!?!? Called the feds and they said it was due to high call volume. Yea...

Fri, 04/05/2013 - 18:13 | Link to Comment GoldRetriever
GoldRetriever's picture

Looks like the Fed has an "Ally" at the University of Feenix.

Fri, 04/05/2013 - 20:47 | Link to Comment W74
W74's picture

Worthless, no one hires people with online-only degrees.  Hell, brick and mortar degrees are bad enough but at least those have SOME quality to them.

Fri, 04/05/2013 - 20:44 | Link to Comment W74
W74's picture

I wonder what happened in Aug. 2011 to make depository institutions stop lending?  If memory serves I think there was some important country that had it's credit rating downgraded by one of those rogue credit ratings institutions.  Can't seem to recall ecactly which country it was though....

Oh!  And lets take a look at that Mar. 2013 bar while we're here.  Seems to be some kind of pattern thingy starting in June 2011 and then repeating, oh... right about January 2013.

Sat, 04/06/2013 - 13:18 | Link to Comment U4 eee aaa
U4 eee aaa's picture

On the positive side, at least they are getting more practical. No more loans for vacations, boats or vacation properties. The American public is slowly becoming more economical. Pretty soon they'll be paying with cash and then along comes bartering

That said, who in their right mind would collateralize a loan with a shotgun? Have they thought about what happens when they go to collect? More evidence that these people really aren't thinking things through

Sat, 04/06/2013 - 17:07 | Link to Comment rjs
rjs's picture

since we've been watching this report for the increasing level of student debt, we want to determine what portion of that consumer credit increase is originating with the Federal government; to do that, we scroll to the 3rd table in the release, under the heading "Consumer Credit Outstanding", and check the subheading "Major types of credit, by holder" which gives us actual data which is not seasonally adjusted; there we see the actual increase in February non revolving credit is just $2.5 billion, from $1,952.5 billion to $1,955.0 billion, a far cry from the seasonally adjusted amount...

looking further to see what portion of that was from the federal government, we see federal loans outstanding increased from $552.7 billion to $556.9 billion. or $4.2 billion dollars, $1.7 billion greater than the total...that means the increase in student loans outstanding was at a rate 168% greater than the rate that overall non-revolving credit expanded...in fact, since the unadjusted revolving credit numbers actually show a decrease of $15.6 billion, from $826.4 billion to $810.8 billion, that means that the only portion of consumer credit that showed an actual, unadjusted increase in February was the Federal portion of student loans...
Sat, 04/06/2013 - 23:17 | Link to Comment CustomersMan
CustomersMan's picture

 

Regarding the "only new areas of credit growth"

 

And the credit that's being extended is most likely never going to be repaid, so is it credit when you know this or a hidden subsidy?

 

Good Question.

Mon, 04/15/2013 - 07:25 | Link to Comment AmeliaV
AmeliaV's picture

Consumers take out loans to purchase things they can’t afford at the moment. College tuition and cars are quite expensive and that’s why lots of customers choose getting in debt to get it. Student loan debt is a real problem because prices for college tuition are just sky high and many young people apply for student loans to attend college. Almost for all the people the education is a priority and it’s sad to see how such a necessary thing becomes a luxury item. Job market is very weak and many people are forced to live through paydayloans after graduation.It's necessary to make efforts urgently, otherwise this problem will get on the next level.

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