Student And Car Loans Represent 99% Of All Loans Taken Out In Past Year

Tyler Durden's picture

The September consumer credit print is out and once again, it shows just what the key drivers in the US economy are. Or rather is: it is the US government handing out unrepayable student and car loans, even as the general consumer is widely deleveraging. Looking at the numbers: of the $13.7 billion in total consumer credit created in September, $15.8 billion (no, it's not a typo) was non-revolving credit, i.e., auto and student loans. The remainder, or ($2 ) billion, was yet another month of credit card deleveraging, as the bulk Americans can only buy "stuff" if it comes with the implicit provision that the credit will never have to be repaid, such as when it comes from the most insolvent entity of all - Uncle Sam.

 

But perhaps the chart that puts it all in perspective, is the following, which shows the breakdown of total credit issued in the past year broken down between revolving (credit cards) and non-revolving (car and student loans). The latter amounts for 99% of all loans taken out in the past 12 months. It needs no additional commentary.

Thank you Uncle Sam for making yet another generation of indentured servants who are studying geology on the taxpayers' dime, who will never get a job, who are up to their neck in debt, but at least can afford a Chevy Silverado.

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hedgeless_horseman's picture

 

 

I passed 200,000 miles on my daily driver today, and my kid in college is on an academic scholarship (mostly, I believe, thanks to no television for 15+ years).

hedgeless_horseman's picture

 

 

That was back the, Bill.  Now, if you are overdrawn, they loan you MOAR!

EnslavethechildrenforBen's picture

Housing is only to be owned by Bankers. All others pay rent. Now go back to work slaves.

TheTmfreak's picture

Studying geology not getting a job? Wow how moronic can you get there Tyler. Apparently you've never heard of this thing called oil. Starting pay for a masters in geology = 100k.  Not to mention you can generally get your masters for free paid for by (the state).

TruthInSunshine's picture

Vehicle loans - loans securitized by rapidly depreciating assets with initial LtoV ratios 'puffed' by the lender to clear the deal.

+

College loans - securitized by future prospects for gainful, long-term employment paying a wage allowing for covering living expenses plus repayment of college loan + interest, at a time of deep, structural hollowing out of job market & real (and even nominal) decline in wages and benefits plus massive unemployment/underemployment.

=

_______

#winning

superflex's picture

As a geologist for the past 21 years, i concur.  

Too bad when I graduated in '92, the oil patch had dried up and there were no jobs in petroleum.  Mining and environmental were the only two fields producing jobs.  I certainly wasnt going to go into research of trilobites or solid solution series of magmas.

Who do you think finds the gold the Fed abhors.  

If it cant be grown, it has to be mined, bitchez.

TheTmfreak's picture

I was thinking about going into Mining myself, but moved in a totally different direction. I've definitely known quite a number of people who went oil, and uhm... they're hooked up. I mean in the US today Oil companies sponsor the hell out of geology programs and groom and pay lavishly for new oil recruits.

superflex's picture

Damn,

That Bloom County cartoon remined me of the Bill the Cat acid i did back in college.

Good times, good times.

dark pools of soros's picture

SR 2.0  just in time for your golden years

mvsjcl's picture

King Tut and 4-way window pane.

Groundhog Day's picture

What asset bubble will be created once most of the students realize college is road to serfdom and the idiots who keep buying new cars realize that you can get a 2 year old car which is barely broken in for near 40% off the new sticker price.

Whats left after housing, student loans, and auto's? Maybe why thats why they are positioning for a war on the climate.  blow a bubble in a whole new industry which no one can really measure.. fuckin brilliant 

NOTaREALmerican's picture

Re:  fuckin brilliant 

It actually is.    Big-MIC was a fantastic crony-capitalist debt scam.   Big-House was another.   Krugman's space-alien plan didn't "fly" (even with the help of the ZH death-star plan), but Big-Climate might work.    If we built a levy around the entire country...  now THAT would be some infratructure project that would rival the Big-Road, Big-Water, and Big-Airport scams combined.

YC2's picture

I am starting to wonder if I shouldnt just find the NWO conspiracy I am most comfortable with and see if I can get in on the ground floor.

NOTaREALmerican's picture

Re:  NWO conspiracy

The UN just formed the "Asteroid Defense" working group (seriously, but I can't think of the real name, but it's something like that).   Can you imagine what Big-Space will be like when the US and the UN (and the Chinese and Russians and EU and every other sociopaht on the planet) start getting money to find asteroids that will hit the earth.

THAT could be a gold mine (HEY, not literally you gold nuts) and the UN as great food.

YC2's picture

Im just saying, better we blast asteroids to hell than eachother, so I am all for it.

cynicalskeptic's picture

Sounds like a cover story for something like Ronnie's alien defense system - so the aliens already here and in control can shoot the 'good' aliens out of the sky and keep them from saving Earth.

All hail our Reptillian overlords.

Dareconomics's picture

Once credit creation slows some more, a recession will follow in quick order followed by God-knows-what by the new Chairman:

http://dareconomics.wordpress.com/2013/11/07/around-the-globe-11-07-2013/

Winston of Oceania's picture

Plenty of crappy books out there too so nip that reading stuff in the bud... Heaven knows learning to control oneself is out of the question. I raised up a Phd from a cub who graduated with no debt doing research in Chemistry. That's like blaming a gun for killing someone... BTW no TD from me.

Groundhog Day's picture

wow HH, that is impressive.  I thought i was strict with 2 hours of tv and 2 hours of ps3 a week for my 2 kids only after they completed my homework assignments (not the pathetic school work they give them which is done in 5 mimutes)

Froman's picture

I am with you HH...dd has 200k+ on it, we have had "peasant tv" (antenna no cable) since 1996, no wii, psp or xbox. We have our kid do the homework the teacher assigns plus the homework that we assign (which is done year round) and when not in school our kid must either play a sport or work.  Very happy to hear that strategy is paying dividends for your child.  We are hoping for the same. 

centerline's picture

Don't discount music Froman.  Evidence is pretty conclusive that kids who participate in music do better.  They get used to real world skills like actual studying, practice, preparation, public performances, interviews, etc.  Plus, in school they wind up part of a group that behaves like a family of sorts (a place to fit in which keeps kids on the right track).  As an added bonus, you gain a skill that you can hopefully enjoy for life.

Better yet, do sports and music in some combination letting the kids explore and try stuff out.  My agreement with my kids is that I will provide the opportunity and equipment if they put in the hard work and dedication.  What hopefully comes out of it among other things is confidence.  I think the world we are heading into is one where determination is going to matter at least if not more than credentials.

dark pools of soros's picture

you better teach them all about gender diversity before child services come after them

Froman's picture

thanks for catching that CL...I am with you...we do music...kid plays the viola and piano. I play piano and guitar and have a vast and varied collection of recorded music.  That is one of the things that we do instead of watching peasant television.  One tends to have a lot of time to do other things when one is not glued to the television.  

Freddie's picture

Good for you. TV and Hollywood are shit and are for retards who support the system by watching.  IDiots.

Againstthelie's picture

Congratulations.

How did you manage this, because every kid is attracted by the poison and they don't understand, why it's not good for them. How did you do it?

hedgeless_horseman's picture

 

 

Simple.  It is our house.  We gave away the television. 

Againstthelie's picture

And the children did not moan and whine and there were no problems. This, my friend, you can tell someone else...

Grande Tetons's picture

Default now and beat the rush. 

Gringo Viejo's picture

Bad news. We've eaten the seed corn.

giggler321's picture

So that's +1 to Monsanto then?

NotApplicable's picture

Well, what we didn't piss on while drunk.

Dre4dwolf's picture

students owe some 700 billion dollars.

46% was it? that were not up to date on payments....?

so thats atleast 300 billion dollars that won't get paid off.

 

Student Bailout of 2020 maybe? or Debt Slave Work Camps?

CClarity's picture

Could denationalize Sallie Mae and have the Fed gobble those securitized loans at $85B / mo since UST bonds are running out and Fed already buying $3 of new mortgages for every 1$ originated.
What a bloody mess!

W74's picture

Funny you mentioned Geology.  Actually one of the more employable majors out there.  Not quite as good as Physics or BioChem, but is still a hundred times better than English or Psychology.  I'd say Geology is actually in the top ten of broad-based categories.

Bosch's picture

Yeah I was going to say, but was too lazy to look it up to confirm it, but are geology majors easily employable by oil & gas companies (i.e. the only ones currently doing shit)?

29.5 hours's picture

 

 

Geologists used to be famed for feast or famine as the oil industry went thru cycles.

However, nowadays both private and public organizations hire people in earth sciences to stay in conformance to all sort of ecology and environmental regulations or concerns.

 

 

Decolat's picture

Top ten?? I have a 2 year geology degree. Nobody gives a shit. But that's probably because it's not a 4-8 year degree.

Or maybe nobody gives a shit because I don't even give a shit anymore. Fuck it, I'm going camping. 

You are not your job. You are not the car you drive... 

 

Citxmech's picture

I've got a buddy with a PhD in Geology.  MF'er is making so much god-damned money right now he's having a tough time finding ways to spend it all.  

Associates degrees are only good for competing against HS grads or for the occupational certs they may come with (which is actually a pretty good way to go, IMHO).

If you're just looking for a job - an occupational cert w/a bachelor's degree should put you on a management/foreman track in the trades - or if you're into tech - you may want go through to a Masters deg.  Most PhDs are underemployed considering the BS you have to put up with just to have to take a post-doc position for $35k/yr.  

YC2's picture

I AM my IKEA furniture, tho.  Built all that shit like legoland.

Decolat's picture

That Ikea crap certainly does break like legos.

YC2's picture

Well, stop horsing around on it!  Or, get better with a hex wrench!

mvsjcl's picture

I kinda like the Poing Chairs, though.

Bosch's picture

Chevy Silverado? Are you shittin' me? Those global warming hogs? 

Try a $40,000 BMW with fake leather seats & no SiriusXM that does the exact same task as a $20,000 cheaper Honda Accord or Civic. 

NOTaREALmerican's picture

Re:  cheaper

Unfortunately,  for must human, Bling is how you impress. 

function + bullshit = bling.

Show me something without bullshit and I'll show you something normal people don't care about.

Radical Marijuana's picture

You must have a great list of those kinds of equations, NOTaREALmerican. More and more these days, comedians do not have to make up jokes, but merely report on the absurdities that they easily observe all around them ... As like with merely showing the Chart above, without needing to make any additional comments.

SoCalBusted's picture

Here in LA...

 

Bling = BS/Function

 

..Kardashians come to mind.

Billy Sol Estes's picture

Como se dice "My new Chevy Truck was made in Mexico and Canada" en ingles?

NOTaREALmerican's picture

One must live in a bucolic collage town to witness the gloriousness of "Keynesian" economics.  

It truely cannot be described.     In his honor, if offer-up the "Keynesian" prosperity prayer:

We must borrow more money,
To stimulate demand,
So that jobs are created,
And prosperity ensues,
Then we pay off our loans (unless we don't have enough prosperity, in which case repeat).

Forever, and ever, in his holy bearded name, Amen!