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Car And Student Loans Account For 95% Of All Consumer Credit Issued In Past Year
Today's consumer credit report did not tell us anything we didn't already know: in October, total consumer credit rose by $18.2 billion, the most since May 2013, with the usual massive historical revisions. However, of this $18.2 billion, $13.9 billion was non-revolving credit, while revolving (credit card) debt rose by $4.3 billion. Which means revolving credit is still a woefully low $856.8 billion, or well below the $1.02 trillion when Lehman failed, even as credit issued mostly by Uncle Sam to fund car purchases and liberal educations, has exploded.
Total monthly consumer credit broken down by revolving and non-revolving.
Finally, and most troubling, in the past year over 95% of all consumer credit has been used
to purchase rapidly amortizing cars and even more rapidly amortizing
college educations.
Finally, in the past year over 95% of all consumer credit has been used to purchase rapidly amortizing cars and even more rapidly amortizing college educations.
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If my auto-loan is through GMAC, does that count as federal? Oh wait they sold ALLY.
After middle class home owners, middle class students are being prepared for FEMA camps.
This makes sense: University of Phoenix & Everest University students are using their federally guaranteed student loans to buy new cars so they get to their soon-to-be $15/hour fast food jobs.
I talked with a student at one of these "private universities" in southern Texas. She is seeking some kind of medical assistant certification.
The school offers an iPad at 3X retail, which can be just lumped into the student loan so there's no pain. They also have to buy their own "scrubs", and yes, from the school, at 2X retail. No scrubs, flunk class.
I took a few minutes to determine that none of the classes at that school can transfer its credits to somewhere like the Univ of Texas.
And the piece de resistance -- the certificate is offered by the local goodwill industries region for 1/2 the quoted school tuition, and in 18 mos instead of 2 years.
I couldn't help her. She couldn't walk. She's already 1 year into the program.
You could help her... by putting a bag over her head and beating her with a hammer, while yelling at her in a way that would make sam kinison blush
Come to your senses, mates. All that's wrong is you just don't understand obamanomics. all this worry about the middle class, please. it's so simple. you get a section 8 voucher and select a fat house in a sweet neighborhood. food stamps pays the grocery bill, and there are other programs to pay your utilities. go to benz, lease a C class for 350 a month, go to school and you can use your student loans to make the payments. you can either stay in school and live like a princeling for the next ten years, or venture out and come see me to 'axe' me for a job. what's do hard about that? FORWARD!!!
"If you want to keep your Comsumer Debt, you can keep your Consumer Debt."
Translated: Newly graduated debt-ladened car owners that can't get a gas card.
My oldest is looking at schools now. I want to see where my tuition dollars will go, can we see a chart of the ratio of Administrators:Faculty?
Lets just say there is too much money in the pulpit, and not enough money in the pews.
..there are too many guys and not enough virgins.
See this:
http://reclaimuc.blogspot.com/2011/09/senior-administrators-now-official...
Paper pushers in administration now outnumber everyone.
If you want decent schooling try Trinity in San Antonio or something like that.
Holy shit! A 2x increase in administration from 03-now corresponded to a 4x increase in tuition in the same period.
Admin salaries are substantially higher than faculty so 4x tuition increase makes sense numerically.
How would you employ all "diversity officers" and "associate deans" otherwise?
And associate deans need assistants, who need assistants too, obviously.
A standard 40% of every research grant won by any university dept never gets to the Principal Investigator. Univ (not even that dept, the general univ level) admin takes it.
Meanwhile more and more TA's teaching classes and more p/t faculty instead of tenured professors. All the money is going to administrators. My private engineering school pays its head a ridiculous salary while you've got foreign grad students who can barely speak english teaching things like Fluid Mechanics. Great deal paying $50,000 a year while teaching yourself a class like that.
Attend Grove City in PA.
So, you're saying that I should not have financed my degree in Lesbian Studies and bought a Mazda Miata convertible on the 70 easy payments plan?
No, we're sayin you should have bought low, and sold high.
You did it wrong, the obvious correct thing to do was to sell one of your organs for BBQCoins and wait for the BBQ coins to go to 90,000$/a coin, at which point you rotate out of BBQ coins into dollars and then rotate the dollars into Silver Bullion, at which point you have a choice of buying back your organs or living a rich lifestyle with the downside of having to urinate into a bag every 30 minutes.
Then you can buy someone else's organ.... and the economy in organs goes on and on....
"Then you can buy someone else's organ.... and the economy in organs goes on and on...."
We Americans are so spoiled. Why couldn't one just simply make due with a piano?
i guess the economy is fixed! great news everyone! mission accomplished banner!
taper my fucking ass
never
tick tock
The collapse in higher ed is happening. Time to build something new. This looks like a possible winner with a good business model, but they do need some media help. Crowdfunding a new global higher education institution is a radical solution. I'll give them that. http://igg.me/at/oplerno/x/5318096 If it actually lowers student costs 80% and increases faculty pay while increasing educational outcomes what is not to love. Still they look like dorks and their video is pretty funny in a home-schooled asburgers kind of way.
Most likely garbage. How will engineering and chemistry labs be done online (other than CS)? And what is the value of engineering or chemistry degree without labs?
Good point, but to actually pay faculty based on performance? Students get to vet the professors before they signup for the class. Shit lets give these dorks a chance. It just might work! http://www.youtube.com/watch?v=GJA0mCCpGxE
Problem is that students will pick profs who will give everyone an "A" - education is the only product which, after paying for it, most people want as little as possible. The system is broken but I do not see how it can be easily fixed.
Fixed grading is one way to fix it.
The top 10% get an A. The next 20% get a B. Next 40% get a C, 20% D, 10% F.
The institutions then submit all their 'A' students for marking. The top 10% get an A ...
Now you know a students ability relative to their cohort, and their cohort's ability relatuve to other cohorts.
Normal distribution, bitchez ...
Not that the 'progressives' would ever allow such a fair, open and honest system. Sigh.
You need to read articles on grade inflation.
Tenured positions are so very rare that the student evaluations can decide yes or no. So the untenured profs make damn sure those customers get the "product they paid for" and don't "take their business elsewhere", which would get the prof blamed for letting a customer walk out the door.
I am well aware of grade inflation. If everybody gets an A, then nobody gets an A worth having.
How about all the students that get an A have to then take the same national exam, in which their institution is graded accordingly?
After some squealing from the left, the institutions left standing would be the ones that delivered A students who actually were A students.
Would you let your offspring take out a student loan to study at a place where they might get an A but the institution's A students get an F when compared to everybody else? Or would you rather have them get a B from an A institution?
The profs who hand out A's like candy or payment for oral services would pretty soon be out of business.
Great idea. And you also create some more work for the ratings agencies. imagine, your degree is from a university rated AAA by moody's. takes away all the risk
You get a D.
The most frequent grade given at Harvard is A and the median grade is A-.
http://www.cnn.com/2013/12/06/opinion/trachtenberg-grade-inflation/
s
Professors can set up labs independent of Universities. Anybody who knows science professors at major research universities knows just how wasteful and inefficient universities are. Professors do all the work in funding their labs, and give a gigantic haircut of that hard-won money to the university in exchange for... not much.
This is a middleman that richly deserves to get cut out. In fact, "middleman" is a rather kind characterization. "Malignant cancer" might be more appropriate.
Very difficult for health and safety reasons.
Assuming we aren't pounded into a new dark ages, it is only a matter of time before something practical replaces the current higher education rip-off. A combination of internet and physical locations is my guess.
Just need something to serve as a catalyst to put some credability behind the degrees that are offered.
You need hardcore bullet-proof test systems to enforce a meritocracy. Wanna be a statesman, motherfucker? (as compared to career politician) Better be able to recite every single law (which means there better not be so many laws that you cannot recite them).
Of course, unless... you want something for nothing. ;)
It is happening to a small degree.
A kid I employ is becoming quite capable at code writing through trial and error and web tutorials. I asked him to do something fairly comples a couple months ago thinking it would take him a while to add a feature to a web site. He showed up two weeks later with it. He didn't know where to start. He isn't great at any of it yet, but he is learning his own way on his own time for free.
He though about college until he saw the price of education. He is from a consertive family, was home schooled, and doesn't understand borrowing for education.
Prediction: Khan Academy and others like it will be shutdown in some way in the next three years. Khan himself will probably have brake and motor mount "problems."
if you smell a taper... well its already been put in ya....
...got nothing...V and MA all time highs
There needs to be a video of someone reading that title and doing a spit-take.
Because its that rediculous.
http://operationbabby.files.wordpress.com/2011/12/spittake.jpg
http://operationbabby.files.wordpress.com/2011/12/batman_spittake.jpg
Paying $900/mo. on the last of my loans. Will be done in a year. I'm one of the dopes that are actually paying them back.
Good for you. Did you learn any thing?
The last 1.5 years or so were pretty educational. The rest was fluff.
"Good for you. Did you learn any thing?"
Hopefully to only get into a fixed rate loan if you absolutely must use credit.
NOOO!!!!! make like the gubmint and pay back in deflated dollars in 50 years!
deflated value that is
This is what everyone forgets cannot be repaired through any sort of reset. The moral hazard. So many on the take - and so many who have been responsible.
Wait a minute.
What the FUCK is "moral hazard" when one entity creates a substance out of thin air with no effort at all, lends it to another entity, and then demands that borrowing entity to pay it back with interest at possibly great pain and effort -- and threatens to destroy their life if they don't?
Yea, Volker did it with interest rates in the late 70's. We're still payin today.
Because "we all" allowed it to happen and unless I have missed something in the streets we are "all' continuing to allow it to happen. Every day that passes under our watch chips away at the moral fabric of our souls as we point all our fingers in directions of blame and refuse to look in the mirror.
The U.S. is a country full of judgement yet no accountability. Do unto others before they do it to you.....
That is the fucking MORAL HAZARD!
It's going to require excellent sniper quality rifles in the hands of intelligent, committed patriots who target elite skulls from significant distances.
After all the events are resolved someone will be called "criminals and terrorists." Either the elites or the patriots, depending on who wins.
It is astonishing that out of those crowds of 150,000 Ukrainian club fodder that not one of them figured this out.
Good post, but you forgot something. They steal people’s deposits first and then create/counterfeit the "substance" out of thin air based on that theft.
They are in effect "lending" people their own money plus counterfeit currency to boot and then demanding they pay it back with "great pain and effort."
I don't even think that Shakespeare himself could come up with the criminals that are the banksters.
"Is it time for the guillotines yet?!"
You got it in the wrong order.
First they counterfeit the currency, then they lend it. Then the borrower is now a depositor!!!
The sucker is lending money to himself, and paying interest for it! This is where the money came from.
I took out student loans in the UK when I was at college (I was one of the first to have to do so after the grant-funded pole climbers pulled up the ladder).
I spent most of it on women and blow. I squandered the rest.
No problem. The middleclass has clearly not been bled dry if they will pay $450 for a card only containing $400 credit.
Starbucks $450 holiday gift cards sell out in a flashI guess if they had auctioned the damn things, the sky would be the limit. Exclusive you know...
When you don't know how to be original, you will pay any price to be exclusive.
Skateboarder: I'm going to borrow that phrase. I promise to bring it right back.
Cheers!
I don't go to Starbucks. Amount of coffee I drink can't afford it. Card might last me a week. Besides, they look at me funny when I order straight up 40wt
It does make sense when you consider that most of these people will be living in their cars. It is kinda like a house on wheels....
Reposes that Bitches
So car loans are the new mortgage.
But where's the collateral?
It's not "credit" if it won't ever be paid back, right? Or am I missing something?
No, no, no, dammit... it's a fucking "credit" cuz somebody rote it in sum bookz. Dat's what bookz are for, to rite shit in so a compn'y or gubm'nt can say they are owedz dis much, muthafucka. Ya b'lieve me or ya l'yin fuck'n eyes?
"Which means revolving credit is still a woefully low $856.8 billion, or well below the $1.02 trillion when Lehman failed."
So none of them there stocks are being bought on Margin. Damn thats good news.
"financed my degree in Lesbian Studies"
Hillary is looking to fill up her cabinet when she's elected. The way the FSA is increasing she has a good chance to win.
If you have no job - or have a low paying job - quit - take out a student loan - don't go to class - buy booze and blow and party til the cash is gone - don't make any payments - tell the bank to fuck off when they call - to think of this as your own personal bailout.
I think it's fair consumers get credit in order to "invest" in negative revenue purchases like cars. As long as there are idiots willing to take the other side of the trade.
Who are the idiots holding this worthless debt? I know it's not me.