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98% Of All Consumer Credit In Past Year Was Student And Car Loans

Tyler Durden's picture




 

Same shit, different month. If last month total consumer credit increased by $13.8 billion, of which $14.0 billion went into student and car loans meaning consumers continued deleveraging on their credit card statements (some expectation for a recovery there), then February was even worse. The headline number was great: $16.5 billion, well above the $14.0 billion expected. The problem is that of this number well more than 100%, or $18.9 billion was once again slated for car purchases and paying down "student bills" (not really - as has been reported numerous times before Americans increasingly use student loans as a means to pay for everything else but tuition).

In other words, anyone suggesting that the "surge" in household lending is in any way remotely indicative of consumer hope in a recovery is i) an idiot or ii) clueless and won't even be bothered to read the fine print which once again suggests that the only credit Americans will take on is whatever comes implicitly free, and is certainly not meant to be repaid, courtesy of Uncle Sam. Unlike credit cards.

 

And putting this in context, in the past 12 months, a record 98% of all credit - $162 billion - has gone into non-revolving debt, i.e., student and car loans. How much has been added to credit card balances? An absolutely meaningless $4 billion, or 2% of total. Shown below, the "consumer recovery" is the bar chart on the left.

 

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Mon, 04/07/2014 - 15:19 | 4633168 FieldingMellish
FieldingMellish's picture

What do student loans and car loans have in common?

Starbuck's Drive Thru.

Mon, 04/07/2014 - 15:27 | 4633198 BrigstockBoy
BrigstockBoy's picture

In-N-Out Burger

Mon, 04/07/2014 - 15:42 | 4633255 NoDebt
NoDebt's picture

Would you like fries with that debt?

Mon, 04/07/2014 - 15:51 | 4633289 Rick Blaine
Rick Blaine's picture

"Growth"

Mon, 04/07/2014 - 16:12 | 4633346 jbvtme
jbvtme's picture

brain washing on credit

Mon, 04/07/2014 - 16:17 | 4633372 Handful of Dust
Handful of Dust's picture

det = grote

It's basic Princeton Econ, 101.

Mon, 04/07/2014 - 15:56 | 4633301 Caviar Emptor
Caviar Emptor's picture

Here's the deal:
Pre-Crisis: Consumers load up on debt for real estate and consumables for their home and electronic lifestyle
Post-Crisis: consumers load up on debt to fund education so they can qualify for work, and for autos so they can get to work.
See the trend yet??
Next phase of the "Recovery": Consumers go into debt for food, water and air.

It all points to the same fact: consumer buying power is circling the drain due to biflation.

Mon, 04/07/2014 - 16:31 | 4633410 centerline
centerline's picture

I really hate the "biflation" term - but, you know what?  It fits better than anything else right now because it doesn't lead one into classical definitions that just don't fit so well.

Mon, 04/07/2014 - 17:11 | 4633549 Dick Buttkiss
Dick Buttkiss's picture

Been using the term for some time now and expect the full force of it — collapsing asset prices, skyrocketing consumer prices relative to wages (for those who have jobs) — sometime this year, next year at the latest.

Mon, 04/07/2014 - 18:03 | 4633648 MachoMan
MachoMan's picture

No need to reinvent the wheel.  It's called cost push inflation...  In this case, trying to push a 400lb woman over a 12 foot wall on a "team building" ropes course.  She'll get over the wall eventually, it will just take a sprained back, few beers, and a call to a crane operator.

Traditional inflation (and everything we think of inflation) merely describes demand pull...  totally different beast.  Cost push inflation is reserved for those special instances when a currency dies (although not necessarily the only avenue).

Mon, 04/07/2014 - 21:57 | 4634430 Dick Buttkiss
Dick Buttkiss's picture

Not to quibble, but in a "typical" currency collapse (e.g., Zimbabwe), asset prices rise with consumer prices (cost-push), whereas what we're heading toward with a dollar collapse — i.e., a collapse of the world's reserve currency — is a collapse in (paper) asset prices, while the cost of real goods (e.g., food and fuel) outpaces wages (as has long been the case).

The paper collapse awaits, in other words, and in case you're not prepared for it:

http://readynutrition.com/resources/52-weeks-to-preparedness-an-introduc...

 

Mon, 04/07/2014 - 19:38 | 4634049 daveO
daveO's picture

Dollar collapse, same thing. What would a Mexican, in the 2nd half of the 1980's call it? That might sound more stylish.

Mon, 04/07/2014 - 16:08 | 4633332 seek
seek's picture

I'm going to hestitatingly throw some love Starbuck's way. They employ my daughter (who is a diligent worker) and have thrown enough hours at her that's between earnings and grant, she's getting through college debt-free, and they just supplied her with a health policy that matches mine for $25/mo.

It's a sucky place to be if you're a college grad with student loans, but it's actually a pretty good option if you're working on being a college grad without loans. I'm grudgingly impressed by how they handle people with a work ethic.

Mon, 04/07/2014 - 16:13 | 4633357 centerline
centerline's picture

I have middle-aged family that quit working, took out an Obama loan for college and are living off it.

Interesting times, eh?

Mon, 04/07/2014 - 16:31 | 4633416 tiwimon
tiwimon's picture

And... when they the parade (or is it charade?) stops and those student loans come due - there is no getting away from it - student loan debt cannot be run through bankruptcy, and they can and will take future earnings (if any) - these are non dischargeable loans that must be paid. Using student loans to live on as a form of paycheck is just borrowed time - most will never ght a job equivilent in pay to pay off said loans.

Mon, 04/07/2014 - 16:36 | 4633434 centerline
centerline's picture

Yup.  Is going to end well.  lol.

Rock meets hard place - for everyone!

Mon, 04/07/2014 - 16:36 | 4633436 seek
seek's picture

While I agree, I'm willing to bet they'll buy votes with debt forgiveness within the next 10 years, probably within the next five. It'll just be a thinly veiled bank bailout.

Mon, 04/07/2014 - 16:44 | 4633463 centerline
centerline's picture

The masses will cheer the "strong man" as he promises to wash away thier debts for allegiance to the "cause."

The whole Star Wars thunderous applause thing and all.

History repeating itself over and over.

Mon, 04/07/2014 - 19:40 | 4634052 daveO
daveO's picture

At the rate of debt expansion, I'd be surprised if they ever have to pay off those debts in dollars.

Mon, 04/07/2014 - 18:32 | 4633829 Offthebeach
Offthebeach's picture

They're Fedgov backed. ( you, me, anyone in the world with fedgovReserveCo paper). Just continue to the PhD in Transgender Sustainable Theatre Lighting. Then get a union municipal job that reimburses.

Actually since we owe the money to ourselves, or our never to be had grandchildren, we should all go to Podunk U.

/s

Mon, 04/07/2014 - 19:31 | 4634022 stu11
stu11's picture

keep up tiwi......  "Student Loan Bailout"

Mon, 04/07/2014 - 16:34 | 4633424 seek
seek's picture

Have an ex-GF that did the same thing, I think she's just shy of six figures on loans, maybe 20% went to school and the rest was living expenses over 4 years. Insane. I think she's paying it back at the rate of $100/mo now.

Thing that really pisses me off is savers like myself and hard workers like daughter will get nothing for being responsible, and these people will get away with it. You just know there's going to be a student loan debt forgiveness bill somepoint in the future where the Fed just prints and hands the cash over to the loan banks to make them whole.

I totally get why people say "fuck it" and sign up for every gov't program offered.

Mon, 04/07/2014 - 16:42 | 4633456 centerline
centerline's picture

Yeah, I have 2 kids that are approaching college soon enough.  This world is shaping up to put a disproportionate weight on thier shoulders in about every way possible.  Not cool at all.  Moral hazard just creeps higher and higher every passing day.

Mon, 04/07/2014 - 16:53 | 4633495 seek
seek's picture

"Moral hazard just creeps higher and higher every passing day."

Ultimately this will cause a Atlas Shrugged-type strike in real life, probably along the lines of the old USSR joke: "they pretend to pay us, and we pretend to work."

It really does appear it will get to the point soon where the young (and increasingly older) will have no incentive to work whatsoever, and if they have a work ethic, it will be held against them.

Mon, 04/07/2014 - 22:29 | 4634517 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

It really does appear it will get to the point soon where the young (and increasingly older) will have no incentive to work whatsoever, and if they have a work ethic, it will be held against them.

Kind of a like a union job now.

Mon, 04/07/2014 - 16:57 | 4633501 TheGardener
TheGardener's picture

Looser economy has had run her way.

You do not borrow any money for private purposes, no matter what. As an entrepreneur, all you would ever go into debt for is merchandise while having multiples of capital sloshing around your side for your suppliers benefit.

Debt is for losers. Starbucks consumers among thinking folks? What a scam, I feed myself and the dog for a week on that tap for a nap...

Mon, 04/07/2014 - 17:14 | 4633556 Agent P
Agent P's picture

seek, thanks for the insight and I'm truly happy for you and your daughter.  That being said, I still ain't paying no $5 for no damn coffee. 

Mon, 04/07/2014 - 17:03 | 4633526 Bunga Bunga
Bunga Bunga's picture

What do student loans and car loans have in common?

The collateral disappears quickly.

Mon, 04/07/2014 - 17:39 | 4633632 SAT 800
SAT 800's picture

Gonna be a lot of "students" riding bicycles. IMHO.

Mon, 04/07/2014 - 15:19 | 4633171 max2205
max2205's picture

That's good right? 

Mon, 04/07/2014 - 15:20 | 4633172 robilla
robilla's picture

Is mortgage debt not considered in this calc?

I don't know the data series that well

Mon, 04/07/2014 - 15:20 | 4633177 quintago
quintago's picture

revolving vs non

Mon, 04/07/2014 - 15:20 | 4633173 quintago
quintago's picture

They rack up CC debt, people bitch. They don't, people bitch. Can the consumer get an effing break here. Jesus

Mon, 04/07/2014 - 15:46 | 4633272 cynicalskeptic
cynicalskeptic's picture

The consumer is getting screwed with a big old splintery telephone pole... banks get money for 0% - or damn close to that and charge consumers 21% on credit card debt - WITH fees and penalties added as icing to the cake?!?!?  (How do you NOT make a nice big profit with those busioness fundamentals (eve anllowing for defaults)?

Why would any sane person bother racking up more debt if they don't HAVE to?... and if you really NEED access to credit you can be damn sure they're not allowing you any.

Mon, 04/07/2014 - 17:52 | 4633670 MachoMan
MachoMan's picture

I think there's a decent argument to make for the folks who've managed to rack up an incredible amount of debt...  especially the ones who have been so successful at it that the banks wouldn't dare foreclose...  I have doubts that these folks don't have it figured out.  If you have no future prospects, then why not rack up the debt (having a great time) and file for bk?  Of course, while pursuing this consumptive lifestyle, everyone forgot to actually have fun, but I digress. 

In the case of students, it's college (4+ years of vacation) -> mom and dad's basement (maybe a part time job/remainder of life on partial vacation) -> inherit a house (probably mortgaged to the gills, but probably unforecloseable)...  The american dream.

Mon, 04/07/2014 - 15:20 | 4633174 Stoploss
Stoploss's picture

Ha Ha funny, funny. There is no chart on the left.

That's my neighbors two new camper busses..

Mon, 04/07/2014 - 15:20 | 4633175 Shizzmoney
Shizzmoney's picture

Holy shit

Mon, 04/07/2014 - 15:21 | 4633182 101 years and c...
101 years and counting's picture

who needs credit when you have the great amerikkan ponzi known as stocks?  buy low, sell high.  use fed-funded gains to buy things with cash. duh.  everyone is doing it.  no risk, all reward.

Mon, 04/07/2014 - 15:26 | 4633195 NEOSERF
NEOSERF's picture

Starbux is exactly the intersection of these two loans.  After you come out with your anthropology degree and $120K in debt, you buy a car to get to your new job at Starbux.  Just a matter of time before Starbux bail on healthcare now that Chuck's mission is done to provide healthcare to all his employees.  Then see how long it takes to get a triple expresso shot, caramel macchiato with the new crop of employees.

Mon, 04/07/2014 - 15:27 | 4633202 NEOSERF
NEOSERF's picture

Expect Winnebago sales to go through the roof in the coming years as boomers have no alternative and no desire to pay taxes anymore.  Sell the home, take your $50k equity and get on the road plugging into the new Tesla rechargers and hiding from the taxman...

Mon, 04/07/2014 - 15:31 | 4633214 KidHorn
KidHorn's picture

You might be right. I guess all you need is a PO Box for your SS checks. Can you direct deposit SS checks?

Mon, 04/07/2014 - 15:45 | 4633265 NoDebt
NoDebt's picture

Absolutely.

Mon, 04/07/2014 - 15:45 | 4633267 SmallerGovNow2
SmallerGovNow2's picture

I can retire in two years and working to sell the house right now, buy a piece of property in the county, and a fifth wheel to park there with power, water, and septic hookups for when my wife and i aren't traveling...

Mon, 04/07/2014 - 16:08 | 4633333 thamnosma
thamnosma's picture

There is something tempting about it.  I've seen them parked at state campgrounds right at the Pacific in Cali.  The houses above them cost millions.   60-70 degrees all year.   Get tired of that?   Drive on...

Mon, 04/07/2014 - 16:21 | 4633384 Professor Fate
Professor Fate's picture

Absolutely NEO.  If I was younger, it would be a sailboat.  But now its an old farts "Goin' Galtmobile".  Can't wait to pull the plug.  Got a couple of small businesses to sell and then....GOO-BYE!

Fate the Magnificent
"Push the Button, Max"

Mon, 04/07/2014 - 15:30 | 4633207 Smegley Wanxalot
Smegley Wanxalot's picture

Student loans all go to drugs.  So the drug cartels are bullish at this news.

Mon, 04/07/2014 - 15:32 | 4633215 fzrkid
fzrkid's picture

"clueless and won't even be bothered to read the fine print which once again suggests that the only credit Americans will take on is whatever comes implicitly free, and is certainly not meant to be repaid, courtesy of Uncle Sam. Unlike credit cards

 

Student debt offers no way out as it is a collatralized loan 'on your lifetime earnings'

 

Where as a credit card is a nonsecured loan. Just dont pay it.. 20 years ago I let 30k of CC debt go. Havnt taken on any debt since.

 

Though I am tempted to load up on CC, max them out and move to Singapore...

Mon, 04/07/2014 - 18:20 | 4633784 BooMushroom
BooMushroom's picture

You forgot the phrase "under current law." Debts that cannot be paid back, won't be.

Mon, 04/07/2014 - 15:33 | 4633219 Gaius Frakkin' ...
Gaius Frakkin' Baltar's picture

more debt = green stocks

Mon, 04/07/2014 - 15:34 | 4633222 KidHorn
KidHorn's picture

Clearly, the only entity making loans is the US gov't. I think the FED wants to change this. The problem is no one in their right mind is going to loan at 5% with thier own money. I wouldn't give a student loan at less then 20% unless the student was a straight A student majoring in something that's in demand.

Mon, 04/07/2014 - 15:38 | 4633238 Gaius Frakkin' ...
Gaius Frakkin' Baltar's picture

No... but the dumbasses will turn around and buy Ponzi bonds for 3%.

Mon, 04/07/2014 - 15:55 | 4633304 lasvegaspersona
lasvegaspersona's picture

GF who do you think buys bonds at those rates? Perhaps a few pensions funds forced to and maybe a kiss ass country trying to curry favor....normal humans...not much.

Mon, 04/07/2014 - 15:57 | 4633311 Solarman
Solarman's picture

Right you are sir.  I am in the Private Lending business and we have a lifetime of borrowers at 10-12, with 1-3 in originations at 30-40% current equity.  We also don't  take a loan over one year so we can underwrite down with the next downdraft in asset prices.

Mon, 04/07/2014 - 15:41 | 4633223 inky
inky's picture

Theres no need for people to get into credit or debt =

LIVE TO YOURS MEANS !

People are programed/brainwashed from young to want all the stuff asap = (Get into debt) which in turn keeps the fake economy ticking and keeps the pockets lined of the fkrs up top.

Sheep really do need to wake up because when the shit hits the fan (and it will),them shiny things that they got into debt for will not do them much good.

Mon, 04/07/2014 - 16:46 | 4633470 falconflight
falconflight's picture

The way for most to claim some measure of control over their financial futures is to live Below your means.

Mon, 04/07/2014 - 18:59 | 4633908 BooMushroom
BooMushroom's picture

"Annual income twenty pounds, annual expenditure nineteen [pounds] nineteen [shillings] and six [pence], result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery."

Mon, 04/07/2014 - 19:49 | 4634082 daveO
daveO's picture

And, hold savings outside of depreciating dollars.

Mon, 04/07/2014 - 15:35 | 4633225 elwind45
elwind45's picture

Puts the snap in QE

Mon, 04/07/2014 - 15:39 | 4633233 franciscopendergrass
franciscopendergrass's picture

pretty soon we will be like china 30 years ago.  Very few cars and everyone riding bikes.  The Chinese did not operate on credit back then and they did not have the educational opportunities like they have now.  It is so strange to see the US taking a shit dive, watching a useless president making idle threats and watching China's power increasing.  Maybe people having less cars and walking and riding bikes might be the good thing for the States.  It would get their fat, 60%-obesity-rates asses off the couches and do something athletic.

http://www.theurbancountry.com/2013/02/photos-chinas-history-of-bicycles...

Where did we go so wrong?   Thanks government, corporations and lazy ass, entitled Americans (and for voting for dipshit election after election) for turning the greatest power the world has ever known into a fucking banana republic.

Mon, 04/07/2014 - 15:39 | 4633246 adr
adr's picture

ha ha ha ah ah Americans riding bikes. More like everyone riding Rascal scooters on disability.

The future of America is Wal-E.

Mon, 04/07/2014 - 15:44 | 4633262 franciscopendergrass
franciscopendergrass's picture

Without government and other countries buying our bonds, who will provide the hoveround chairs and EBT?  /Sarc Off

Mon, 04/07/2014 - 16:15 | 4633358 ParkAveFlasher
ParkAveFlasher's picture

The population dispersal in this nation is based on cheap oil.  Good luck riding a bike daily any place with highways, fluctuating weather, industrial sections, etc. 

That said, the support for motorcyclists in NYC is appalling.  I can't speak for every urban area but you would think it would be the way to go - especially if weather permits, especially in high-density areas with, say, <10 mile round trip commute.  Then again, I suppose no demand for either cars or public transport (both union-feeding-chutes) can't be tolerated in our modern economy for its deflationary impact.  We can't even get a one-time deflation.

Mon, 04/07/2014 - 15:38 | 4633240 Sudden Debt
Sudden Debt's picture

oh please, why do people take out such large loans for cars?

I know people why buy cars where the downpayment is as large as the downpayment of their house. Get real....

Mon, 04/07/2014 - 15:49 | 4633282 pupdog1
pupdog1's picture

Is that shark running down the street, did he simply lose it at the dinner table, or is he talking to customer service at his cable company?

Mon, 04/07/2014 - 17:24 | 4633588 Agent P
Agent P's picture

Because the average idiot isn't very good with math only cares about one thing: "What's my monthly payment?"  If this weren't the case, there would be no 84 month auto loans with 20% negative equity rolled in from the trade in.  

Mon, 04/07/2014 - 15:38 | 4633241 debtor of last ...
debtor of last resort's picture

Long term refinance operations bitchez. Sheeple learn.

Mon, 04/07/2014 - 15:38 | 4633243 adr
adr's picture

I was driving around yesterday and found a Telsa charging station, but it didn't have the fancy roof. Just eight charging ports and some astroturf on the hill behind it. The town it is in is off Rt 271, a major highway but a half hour from anywhere significant. The town is also right outside the ghetto where nobody will ever have a Tesla, unless they really go long on EBT.

I know of three Tesla Model S in NE Ohio. Two in Beachwood and one in Akron. I wonder if the owners will all drive a half hour to the ghetto to charge their car in the opposite direction from where they work?

Mon, 04/07/2014 - 15:43 | 4633256 franciscopendergrass
franciscopendergrass's picture

The capital expeditures provided by government loans.  How well did government loans do for Coda, Fisker, Solyndra, GM, et. al.?

Mon, 04/07/2014 - 16:16 | 4633366 ParkAveFlasher
ParkAveFlasher's picture

...and the sign on the port said, "Misallocation Station".

Mon, 04/07/2014 - 15:45 | 4633270 Dr. Richard Head
Dr. Richard Head's picture

I didn't see any Tesla's in the designated "Fule Efficient" parking spaces at the Cleveland Botanical Gardens this weekend.  Can't say I wasn't surprised either.

 

Mon, 04/07/2014 - 15:45 | 4633268 Caveman93
Caveman93's picture

Loans are for drones.

Mon, 04/07/2014 - 15:46 | 4633273 pupdog1
pupdog1's picture

When it came time to buy a new car late last Fall, I bought a like-new "certified pre-owned" Toyota from the same dealer that sold the car originally.

Much cheaper, and I was able to buy the thing in cash, which was the point of the exercise. No loan, no debt, instant hard asset in an era of US dollars being trashed.

And, I delighted in fucking the bankers out of a lot of dough with this maneuver, which was the other point of the exercise.

Mon, 04/07/2014 - 18:17 | 4633769 db51
db51's picture

Instant Hard Asset?  lmfao.  I'd love to have seen the dealer's P/L and salesman's commission on your new ride.  There was one word in your post that pretty much sums up your euphoric feelings.  DEALER!    Wait till you drop by your Title Loan Store and find out how much they'll float you on your hard asset.   Guarantee you your Certified Pre Owned is dropping harder than trashed US Dollars.    

JK...Enjoy your new ride.

Mon, 04/07/2014 - 19:53 | 4634094 daveO
daveO's picture

Exactly. I haven't bought from a dealer since 1987. First and, absolutely, last dealer experience.

Mon, 04/07/2014 - 19:54 | 4634095 pupdog1
pupdog1's picture

You have no concept what is going on at dealers right now. Inventory stacked up like cordwood. Been that way for months. Huge markdowns. Of course, unlike you, I have no experience with payday lenders.

Mon, 04/07/2014 - 15:48 | 4633279 yogibear
yogibear's picture

Hey banksters,

Why don't you start doing mortgage-like loans for autos since many debt slaves look at the monthy payments instead of what the loans and interest cost?

Offer 30 year auto loans. They'll just keep pilling the debt on top of debt.

Mon, 04/07/2014 - 16:00 | 4633324 syntaxterror
syntaxterror's picture

Great idea. Nissan GTR sales will skyrocket.

Mon, 04/07/2014 - 16:16 | 4633369 centerline
centerline's picture

They already have loans up to 10 years for cars!

Mon, 04/07/2014 - 17:17 | 4633563 The Most Intere...
The Most Interesting Frog in the World's picture

We are way behind the Japanse... check out this oldy but goody on the 100 year mortgage...  Coming to the US of A soon I am sure....

http://money.cnn.com/magazines/fortune/fortune_archive/1990/05/21/73567/

Mon, 04/07/2014 - 15:51 | 4633292 starman
starman's picture

how's this, the us job employement data incudes hundreds of thousends of part time college workers in the current "new jobs" added! thus the drop in winter when theyre were on breaks and now theyre back till summer.

economy fixed! /sarc

Mon, 04/07/2014 - 15:58 | 4633315 Postal
Postal's picture

*points excitedly* See? I did my part!

Yes, I have student loan debt, but as it helped me get a second degree (computer science this time) and I now have a good job (for as long as the dream lasts), I'm not too put off by it. Still, I'm trying to pay it off early.

Mon, 04/07/2014 - 17:34 | 4633318 syntaxterror
syntaxterror's picture

Another year, another 0% free, no money down, handout. Never ends, does it?

Mon, 04/07/2014 - 16:07 | 4633326 syntaxterror
syntaxterror's picture

President Foodstamp will be decalaring a Debt Holiday before he retires off to the country club, so load up now on free money while you can.

Mon, 04/07/2014 - 16:07 | 4633331 q99x2
q99x2's picture

Everything I have is paid for by the FED. And I ain't even had to take any loans.

Thems banksters must be running scared. That's all I can figure.

Mon, 04/07/2014 - 16:47 | 4633474 Caracalla
Caracalla's picture

The Fed will soon be buying that student loan and consumer auto loan portfolio, lock, stock and barrel.  Then, all of this debt will go the way of the $5 trillion in Treasuries and MBS that they Fed has acquired since 2008.

Mon, 04/07/2014 - 17:05 | 4633533 db51
db51's picture

I'm tired of these Deadbeat Career Students and their Loans which will never be repaid.   I'm sure some of the cost incurred is for some a dat Sandra FlUCK birth control.  All that fucking going on my dime and I ain't gettin nothing for it.    How many of those drunken orgy fucktard bastards on Spring Break plan on paying back the loan?  huh?   My guess in NONE! 

got my Blue Cross Up Your Ass Premium notice today.  Another monthy, another increase.   first Paragraph:  NEW FEES BY THE AFFORDABLE CARE ACT ARE BEING ADDED TO YOUR PREMIUM.  THESE FEES ARE DESIGNED TO PROVIDE SUBSIDIES TO QUALIFIED INDIVIDUALS TO HELP THEM PURCHASE COVERAGE.  WELL FUCK ME!  This country is a fucking shithole in the making.  

Mon, 04/07/2014 - 17:06 | 4633534 db51
db51's picture

Sorry for the rant.

Mon, 04/07/2014 - 17:06 | 4633536 silentsock
silentsock's picture

A good part of this debt will be defaulted on.

 

What can't be defaulted will likely be bailed out via the tax payers. People that pay taxes need a category of their own. Maybe 'Revolving Rape Victims'.

Mon, 04/07/2014 - 17:53 | 4633612 AdvancingTime
AdvancingTime's picture

Students are using the money to live on and the auto loans should scare us to death because many fall into the sub-prime area.  The article below delves into why we should be concerned about the auto loans and why they mask just how bad things really are.

http://brucewilds.blogspot.com/2013/04/auto-sales-spooky-signal.html

 

Mon, 04/07/2014 - 18:04 | 4633691 Chuck Knoblauch
Chuck Knoblauch's picture

The old white guys at the top of this pyramid have to die before things start to get better.

Stock market welfare queens.

Mon, 04/07/2014 - 18:00 | 4633701 MachoMan
MachoMan's picture

I know a local car dealership that has had to repo a few cars recently because the buyers missed their FIRST payments...  It's basically subprime ninjas all over again...  someone else is mopping up all the bad notes, so put anything with a pulse in a ride.

Mon, 04/07/2014 - 21:56 | 4634424 yellowsub
yellowsub's picture

What do you expect from all these just sign and drive deals?  

Mon, 04/07/2014 - 18:14 | 4633754 yogibear
yogibear's picture

Let's help the Federal Reserve increase it's Ponzi and go from $4 trillion to $8 trillion on it's balance sheet. Based on fractional reserve does it have $40 trillion in debt it's holding worldwide? 

Mon, 04/07/2014 - 21:14 | 4634322 yellowsub
yellowsub's picture

How many student loans went to non students?

Tue, 04/08/2014 - 00:08 | 4634709 Aussiekiwi
Aussiekiwi's picture

In NZ, years ago,when they first came up with student loans, not sure how it is set up now, you could take a  student loan from the government, but if you left the country the loan and all repayments were suspended, so people would get there degrees in NZ and then jump the ditch to Aussie and live the rest of their lives there in a far better country, better climate, better job opprotunities.

Fri, 04/18/2014 - 07:26 | 4672460 Anfiska
Anfiska's picture

But it is very expensive to live and even more expensive to get a good higher education. Now I have to go to university but there is not enough money to pay for it. I think that http://www.cashadvanceloanstore.com/ is the only way out in this situation. 

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