March Consumer Credit Increase Driven Entirely (And Then Some) By Student And Car Loans

Tyler Durden's picture

The March consumer credit headline was a disappointment, increasing by just $7.97 billion, on expectations of a $15.6 billion increase, with the February total revised lower to $18.14 billion. So far so bad. It gets worse when one peeks beneath the surface and finds that discretionary consumer credit in the form of credit card and other revolving loans posted its first decline of 2013, dropping by $1.7 billion, the biggest decline since December's 2.1 billion. So what rose: why debt for purchases of Government Motors and student loans of course, which increased by $9.676 billion in March. In other words: the student bubble keeps getting bigger, more and more GM cars are being bought on subprime credit, while the vast majority of Americans can't even afford to charge toilet paper purchases as the discretionary deleveraging continues.

In the last year, of the $157 billion in total debt issued, $152.6 billion, or 97.5%, is in the form of non-revolving credit. Consumer credit created? A whopping 2.5% of the total or $4 billion.

Finally, who is the primary source of all this free credit? Why Uncle Sam of course (and all US taxpayers by implication, when the student and second subprime car bubble pops of course).

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101 years and counting's picture

i saw a banner ad.  a new dodge truck 0% for 84 months.  im sorry, but how can anyone buy a dodge or a chevy and still be proud to be a keynesian....i mean american???

Hippocratic Oaf's picture

0% for 84 fuckin months?

Sure...........they're not stacking cars.

All is well. All is well.

UP Forester's picture

Whilst watching Hunger Games, er, NHL playoffs, saw an ad where you can lease a brand new Dodge Dart for $59 per month....

Channel stuffing works for the slaves, er, consumer!

Pladizow's picture

I'd be shocked to find out that a large % of this Student and GM debt was mutually exclusive!

Son of Loki's picture

If my $100k student loan comes thru, I'm going back for a masters in pottery. Chicks nowadays are hotter then the furnaces to cook the clay in and very, shall we say, open minded. Don't worry about me fellow ZH'ers, I promise to double-up on the "protection" so i don't catch that new immune-to-every-drug-known-to-man 'sex superbug.'

DosZap's picture


Don't worry about me fellow ZH'ers, I promise to double-up on the "protection" so i don't catch that new immune-to-every-drug-known-to-man 'sex superbug.'


You may as well say hello to Momma thumb and her four daughters.Was it good for you?, I don't know I never felt anything.

kaiserhoff's picture

Read the fine print:

  Undocumented Worker Special.

ZerOhead's picture

Only his father was a Kenysian... and I don't think he drives a Chevy or Dodge...

Cheeseus Sonofdog's picture

What if you buy that car from the repo man within the next 84 months? Assuming the Fed doesn't come up with another bailout for the deadbeats...

kaiserhoff's picture

Will there still be a dollar 84 months from now?

What's the over/under?  There must be an ap for that.

angel_of_joy's picture

The price has the interest included.

Just ask for a cash price...

PAWNMAN's picture

This number will get spun like a top like all figures that don't follow the recovery narrative.

Cognitive Dissonance's picture

Do I grade higher up the curve if I'm a student living on/off student loans who purchases a new car on credit?

gamera9's picture

Top of the cjharts if its a Chevy Volt

ZerOhead's picture

Now that's the kind of optimism that this Great Nation (and the last 4 bubbles and counting) was founded on.

You good Sir would grade "top of the class"... and probably pretty close to "top of the bubble" as well...

imapopulistnow's picture

Anyone else see the clear connection between student loan debt and the "United Rental States of America" posting below?  Sorta hard for the 3+ million indebted college grads each year to afford a mortgage.

AlaricBalth's picture

Only if you live in it CD, while using your EBT card to purchase wine and hookers.

Cognitive Dissonance's picture

Mrs. Cog says no to the wine.

<Wait.....what did I just miss?>


AlaricBalth's picture

Mrs. Cog must be very understanding!

SheepDog-One's picture



kaiserhoff's picture

OT, but Florida internet was dead for most of the day.  I heard it was three states, up to 29 at one point (out of 57?), but when you're in the dark, you don't know who else is.  Nothing on the lame stream media.

Anyone know what caused it, or how wide spread the problem was?

ptoemmes's picture

ATT Uverse here in North West Broward County sucking along as good/bad as usual.

kaiserhoff's picture

So much for the rumor mill.  I guess if humans still traded stawks, it would matter.

digitlman's picture

"FL internet" is too broad a term.


CenturyLink is having a nation-wide outage (or was, parts may be back up).



rtalcott's picture

CenturyLink Suffering Major Broadband Outage Customer Support Lines Have Crashed by Karl Bode 5 hours ago tags: dsl · business · bandwidth · trouble · CenturyLink
CenturyLink users report that the company is suffering what appears to be a nationwide broadband outage across a significant portion of the company's 38 state footprint. Users in our forums in locations ranging from Olathe, Kansas to Fort Hood Texas say they're unable to get any broadband connectivity whatsoever, and that the company's support lines have been busy for the last few hours. CenturyLink says they have technicians working on the outage and assessing the scope of the issue, but hasn't been able to offer technical specifics. The company's Twitter feed has provided restoration ETAs of 24-48 hours to some users. The outage comes on the heels of a massive voice system outage by Windstream last week.

kaiserhoff's picture

Seems to be a disturbance in the force.  Thanks.  We can never be too paranoid;)

Northeaster's picture

Anonymous supposedly attacked everything today:

Somehow, they're just not as potent as they once were.

ptoemmes's picture

Let them use corn cobs.

fonzannoon's picture

if there is less and less for the fed to monetize, at what point do we acknowledge the obvious in the MSM....the fed is buying stocks outright.

LawsofPhysics's picture

Things are not that bad, you just need to be "re-educated".  No one stole anything, you just need to be re-educated!  THESE ARE NOT THE DROIDS YOU ARE LOOKING FOR!!!!!

LawsofPhysics's picture

Paper or physical?  Just checked, all the ounces are still there with a dollar cost average of under $300.  Time for a nap.

Fuku Ben's picture

That's a nice pyramid logo they've got

SheepDog-One's picture

Should be good for a DOW close well over +100 I'm sure.

Peter Pan's picture

Preetty soon all student loans will come with auto loans to save on the paperwork.

realtick's picture

and pretty soon the phrase credit contraction is going to be in the headlines again - just look at the year over year data

Craven Coven Of Credit Card Consumers

RebelDevil's picture

Tell me about it. I racked up $10K in student loan debt in just one year.

Cursive's picture

Good credit.  Bad credit.  BernanQE's Honey Badger Capital Management doesn't give a blue fuck.

kaiserhoff's picture

Well said, sir.  Where can I borrow a billion at -2% to buy gold?  Seems to be getting there.


rubearish10's picture

As previously stated, student loan and auto loans do not impair asset values like housing did (by any stretch of the wildest imgaination knon or devised) or will it bring DOWN the system any more than any other supposed OOOPS! event. We're knocking ourselves out trying to identify the problems and the one we never saw is the one that will make the difference. My 2 fucking cents. Love the data though TD, keep it coming!

Winston Churchill's picture

Short term you may be right.

Longer term ,they will certainly impair asset values.

But then again, there is no long term for the current monetary system.

Tick tock.

SmallerGovNow2's picture

what it does do is indebt the students that will not be able to pay it back and if they do, then not be able to spend that money into the economy...

Fuku Ben's picture

I posted an article link a while back showing how banks had eased auto credit lending so this wasn't surprising. 

Maybe if they would just ease up on homeowner lending the economy would turn around

Nope been there done that.

We need infinite QE fiat printing that will not be lent just stolen

Meanwhile back in fantasy land the terrorist in chief is threatening those that are interfering with his plans for total dictatorial control and creating a national police force aka US-SS

SmallerGovNow2's picture

If this is true, this is an epic event...

RebelDevil's picture

Until I see confirmations and sources, I am skeptical. Though I don't doubt that Mr. Obama (or should I say his masters Mr. Dimon and Mr. Blankfiend) wants absolute domination.

LawsofPhysics's picture

Indeed, no sources, no confirmation of what would have to be a public document.  At this point it's an "onion" piece.

Element's picture

Since beginning of 2009 school year, we're only 4.4 years into this, and all those who sheltered at University in Degrees, when Lehman's collapsed, either just have, or soon will graduate ... maw every year ... and the number of unserviced student loans is going to explode after every graduation season.

I spoke to a kid last week who had done 18 months of a pharmacology degree but already accumulated 70k of student loan debt. I guess he'll be able to self-medicate and have little trouble getting a black-market career in his chosen field.

q99x2's picture

Banksters giving away free money. Where do I sign. I'll be sure to pay them back once I get to Costa Rica.

snakeboat's picture

They need to cut to the chase and issue a Life Mortgage to all serfs upon graduation from high school.  Credit limit based on median national earnings, non-dischargeable in bankruptcy.  Go git ur double-wide and your Chevy Cruz right away.  First stop, the SNAP card and Disability office.  Win win.