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Despite 2nd Slowest Income Growth In 2014, Spending Rises Most Since March Driven By Subprime, Car Sales
Mission releverage accomplished. Personal Income rose 0.3% in August (very slightly below Bloomberg's median estimate), the 2nd slowest growth of the year. Personal spending however jumped 0.5%, beating the 0.4% expectations, and its equal best growth since March. What was spending focused on? Why autosales, which accounted for about half of the spending. And what funded this spending? Why subprime car loans of course; it sure wasn't the real disposable income per capita which was a paltry $37,684 in August.
This is how the income and spending looked like:
2nd miss in a row and 2nd lowest growth in income this year.
But spending jumped (thank you Subprime bubble 2.0)
Finally, following several revisions and even more months of constant increases in the US savings rate, August finally saw a drop, from 5.6% to 5.4%, just as Goldman hinted to the Department of Commerce should happen late last week.
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"Niggas are broke these days"
-Smokey
Personal Spending Beats
Health insuance premiums?
Sub-prime Loans for Clunkers is likely to die off as Bill Gross' departure form PIMPCO will decrease the demand for purchasing of said loans 50% under the consolidated matrix pricing tape's grossly (no pun intended) inflated quotes for NAV calculations. Thereby causing a decline in used auto purchases over the next quarter, to be cited as the primary excuse for a -7% GDP report in the 4th quarter. Other reason was that this year's Christmas spectacular savings sales were backed up into 2013's October pulling demand forwards which once you get there later is pulling it backwards from today. Karma is a bitch.
PS Don't forget next April 15th when a whole buncha folks owe the IRS for Not Having ACA insurance and a whole buncha others find out that the rebates (subsidies) are being cut back. Booyah!
Die you fucking useless eaters.
But not if you're a registered Democrat.
Them we'll refill your EBT card, no questions asked.
I bet every one of those repo's has a crack pipe stuffed between the seat cushions somewhere. Then there's the stink!
Well, I feel richer.
Of course, if you adjust these numbers (in the odd case they are made up) for real world inflation, we fell further behind and the gap is merely buying gas and food on credit.
pods
Let's see. Personal spending rose quicker than personal income. Sounds like a recipe for disaster. Time to get to work Mrs. Chairman.
Does she do windows? How about baseboards?
Thank God for rampant deflation, or we would really be screwed.
:]
Free Shit monthly Budget:
Income: Welfare check... 1000.00
SSI check: 1400.00
Bastard child check: 2000.00
Crack sales: 3500.00
Weed sales: 1700.00
Tricks: 800.00
TOTAL 10,400.00
Outflow: Drugs: 2500.00
Kid's drugs: 3000.00
Gigantric TV: 1500.00
Rims: 800.00
Baby-daddy drugs: 3000.00
Bail: 4000.00
TOTAL: 14,800
HOW IN THE HELL AM I SUPPOSED TO MAKE MY SUBPRIME AUTO PAYMENT????????????????????????????
Auto purchases accounted for Half of total spending. Auto loan debt per buyer is the highest on record.... No bubble there...
Love this country. Where else can a Free Shitter get a shiny new Benz living in a hovel with ssi and a foodcard? Good times are here again, bitches!
Listen A guy I know who is permanently disabled (mental problems.... kinda crazy.... you don't want to spend a lot of time alone with him in a locked room) is on state and federal welfare programs. Dole, SS, SS disability, EBT, section8, Medicare, etc., etc., etc. He lives in a nice 2 BR condo in a state/county sponsored underprivileged housing development for lower income folks and owns 2 cars. A Mini and a Jaguar. He's single and needs/can afford 2 cars. A Mini and a Jaguar.
lovely. that's the kind of story a guy who gets up at 5:30am likes to hear, to stay motivated, you know. /s
if he really is crazy, i wonder if his mini/jaguar came with a crash helmet...
http://www.youtube.com/watch?v=KyRHAvfA6Eg
Hey, c'mon! You're just not thinking positively about this. Get outta the box and se the possibilities!
Here is a quote from a random google search, "subprime auto loans", the first hit:
"Instead of thinking of a sub prime car loan as a problem, think of it as an opportunity. With this loan, you will be able to purchase the vehicle you need now instead of waiting for your circumstances to improve. Visit RoadLoans.com today for a sub prime auto loan and auto finance made easy."
Here is the actal website. No-one can make this stuff up. This is real, not satire. Enjoy:
https://roadloans.com/car-loans/sub-prime-auto-loan
Buying shit we don't need with money we don't have.
Dont forget to vote Progressive in the next election, so's you kin has 2 peemped rides, two. They kin haz my guns, if they let's me smoke free dope and rid beeg on the freeway!
The FS3 generation is reaching peak fertility. The FS4 generation are being pushed around in WalMart shopping carts now. The sense of entitlement will be strong in this generation.
When the checks stop coming and the EBT cards stop working, then the whole country will go Ferguson on y'all's asses. The targets- producers, ie the people who actual work and make stuff. Because when the goose becomes malnourished and anemic because of abuse and neglect, and stops laying golden eggs, (or any kind of egg for that matter), what's the sensible thing to do? Feed it and take care of it so it will lay more eggs?
FUCK NO! What the hell's wrong with you people? That sort of answer betrays your racist, bourgeois, eurocentric, anti-semitic thinking! TRY AGAIN! Strip your mind of all those "two wrongs don't make a right" and "I cannot tell a lie" mental chains that keep you from true freedom!
Now you're thinking! You'll take that fucking gose, and youll kill it and eat it! Why? Because it deserves it for being lazy and not laying eggs! Serves dat goose right, why aint a niggah got no eggs bitch!
This is about what I expect and when things go full Darwin, I'll laugh, open a home brewed beer and check the range markers on my property. Since I live deep in flyover country I don't expect too many problems but I also intend to be a live pessimist.
Please, there hasn't been any real rising income for the middle and lower class since the seventies.
Wait til Sep numbers are thrown in with 9,900,000 that skipped buying food for a month so they can buy an iPhone6.
Broke people are only ones spending money (and having babies) hehehe
This continues until the people who have worked and done it the right way all their lives decide to stop and sit down. Then the dance is over.
Yes, and they are exactly like the government: They are spending somebody else's money.
Us who work need not decide to "sit down". At current rates, I simply will keep cutting back here and there.... each and every way.... little by little.... till I'm part of the Alpo brigade and start collecting my very own welfare necessary to eat and stay warm.
Self-fulfilling prophecy, way the system's designed.
Everybody Must Be Dependent Upon The Teat
See Cicero regarding the Rise and Fall of Rome, his missives regarding Caesar's Bred and Circus Programs along side global Conquest and The Ubiquitous "They's" Raping of the Land's Riches.
I dont blame them...credit scores mean nothing today...if you have gone bankrupt 10 times you can still get credit cards...or a car loan....why not play the free money game...if they dont pay it back...so what??? that is how they roll...there is no right or wrong anymore..just me me me..and I want it NOW
Truth is, when they dont pay it back and the bubble goes nuke-u-lar, the tribe will just hit the big ole reset and wipe out mom and pop's 401/IRA's again to cover the ponzi.. Ssame ole song and dance, life's a bitch for most.
I am thinking there is more to the world than mammon... sometimes we lose sight of that.
Yeah, who needs mammon? Let's see...
Bankers and tribal members: They might need it, but they can gin up as much as they want out of thin air, so it sort of cancels itslef out.
Free shit army: They need it, and it is given to them. No pain, lots of gain.
Those who labor under the fatal delusion that one must work if one would eat: Ha ha, you stupid suckers! YOU'RE FUCKED!!!! HA-ha-ha-ha-ha-ha!!!!!
In China, it is not uncommon to see 10 year car loans on a new Audi.
all gdp management; just like the miraculous inventory adjustments to smooth the comps
Another BS lie number. No way auto sales were higher than in July, no way.
Their computer algo's told them it was higher - so like global warming, it must be true... and don't look behind the curtain.
Max out your debt and buy physical PMs, then default. You have the store of wealth and the banksters are stuck with the non-performing loans which they will hide on their off-balance sheet.
Iread the avg price of a car sold thru a dealer is about $10,380 USFiat if income is 37k this is a non issue.
As for me i bought a 2005 bmw w 127k for 5k cash put 1k in fixing a few things and if it lasts me to 200k in 5 years im good with that.
That pic looks likes a ship with something very big or a smoke trail on the back. Looking at the middle section it's the HMS Impaler.
"Sales"? You mean 72 month 0 interest finances.
I hope someone hacks the GPS "fry switches" which are going to be installed on these newer vehicles sold on subprime and simultaniously fries em all!