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Student And Car Debt Exponential; Credit Card Debt Declines
The summer rebound is well and truly over, and the latest nail in the short-lived rebound came moments ago when the Fed reported that in August, consumer credit rose by only $13.5 billion: only because it was far below the $20 billion expected and a plunge from the $26 billion surge in July, since revised far lower to $21.6 billion. Worse, revolving credit actually declined in the month by just over $200 million, its first decline since February. But don't worry: while US consumers put their credit cards on ice, they had no problems continuing to borrow like drunken sailor when it comes to car and student loans, which rose to a new record high of $2.366 trillion, an increase of $13.7 billion, which still was the lowest monthly increase since January.
Total credit monthly change:
Revolving credit alone:
And student and car loans, i.e. non-revolving credit.
Finally, this is what an exponential chart looks like.
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Thought I had accidently clicked on an Ebola article. Then I read the axes ;)
A new hockey stick graph.
Totally sustainable!
Crack-up boom.
Jubilee!!!
Who needs an official "jubilee" when one can just quit paying. A self initialed jubilee if you will.
An American, not US subject.
The most powerful weapon the American people have is Rejection.
The system of fraud and theft that has been built up upon the backs of the American people is dependent upon our backs. Withdraw our backs, and the whole scheme collapses. This is our greatest weapon.
Quit Paying--Put it into food, and precious metals, etc. They stole what ever "debt money" they loaned you in the first place (fractional reserve banking) and soon you won't be able to pay them anyways.
Quit Obeying--If they are in violation of the Constitution then they are not legitimate anyways.
Quit Playing--Quit being a tool for them to use.
The Four Rs
Rejection: Quit paying, quit obeying , quit playing
Revolution: It is inevitable, so prepare, as they are.
Retribution: The guilty must answer for their crimes against the American people and the Constitution.
Restoration: Restore the American people, country and Constitutional republic.
One does not simply walk away from student loans
It will follow you everywhere - student loans are not dischargeable debts in BK - wages will be garnished, tax returns will be taken, any awards or judgements will be seized as will assets and if you have professional credentials - you can be stripped of them and your licenses - e.g. RN and not able to work in your field
No problem they have auto disable if you lard asses don't make that monthly payment
Depending on one's situation it is more of being prepared to Quit paying.
If one feels that they morally need to repay their debts, they need to disabuse themselves of that nonsense, because the banksters stole the loan-money they loaned them.
Someone struggling with a mortgage and job insecurity, may just want to stop paying and save the dough for moving later and gold, steal and lead.
Everyone's situation is different, but all Americans need to be thinking about Quiting paying.
An American, not US subject.
$2,366,000,000,000.00 in debt.
That works out to $7,170.00 for every man, woman and child in the country;... just for cars and student loans.
It won't be paid back because it can't be paid back...
The system, which is really just an extension of the prior systems which collapsed and liquidated, is unsustainable long term. For the system to be sustainable the system must expand exponentially at the needed rate to sustain the prior. Eventually humans can't expand, collapse and liquidation of the unfunded walking liabilities begins.
2007-2009 marked the fat ladying warming up phase, where credit/debt temporary declined, through the magic of convincing the majority of the people that the helicopters are coming to save them, the system somewhat reversed... but rest assured the equation always wins.
Sorry walking unfunded liabilities... the helicopters are not coming to save you.
It's all good; GM vehicles & University of Phoenix/ITT Technical Institute degrees are appreciating assets.
Next up: Food, energy and water micro-loans, coming to a town near you.
Forget Phoenix & ITT, spend your money on a degree from the Velvet Jones School of Technology:
http://www.youtube.com/watch?v=lZVnve5wG0A
It would be nice if all this would blow up on Obama's watch. I just want to be able to say "Obama's fault" for the next 10 years.
If it blows up on Obama's watch, he'll (officially) declare himself Emperor--for our safety, of course--and we'll never be rid of him.
All you're doing is making it worse by fueling divide and conquer.
Besides, you know damn good and well that POTUSes are never responsible for anything since JFK got told.
It's how you want to look at it. I think its already "blown up". But mainstream media just isn't reporting it. Nevertheless, you may get your wish. After he's out of office, people will feel like they can be more truthful and critical, you know: the 20/20 hindsight thing. But that sucks anyway, because nothing gets fixed. You just get to look back and say "Wow, look at what that 100 MPH accident did to the car!" Instead of "HEY MF, slow down!!"
Yet another chart (last one) showing the growth of the debt ponzi coinciding with the death of the Gold Standard circa 1972.
Apparently your credit cards took the ice bucket challenge
A decrease in revolving credit is the silver lining, right?
Why doesn’t the Student Debt crowd ‘balance transfer’ the debt to credit cards where it is unsecured and can be discharged?
There is always more than 1 way to skin a banker.
I prefer the dragging behind my car method.
because unemployed college grads don't have cards with $100k+ credit limits...
The main problem with that idea, and it's a good idea in my opinion, is that it requires the student loan holder to actually have a credit card. You can get a student loan if you have low income and a pulse. Not so easy with credit cards. And even harder to get a credit card with a limit high enough to do any good.
I don't know if any of you have been on a college campus the last decade or two, but I assure you: all the card issuers are still pimping to students. These are not $200 limit starter accounts, they do not require cosigners and it's assumed a full-time student is not working (or working some minimum-wage part-time job) and has no credit history.
Every major bank still offers college student cards because they're lucrative to the banks, and students will never get a job if they default.
Why on earth would anyone here think a crack dealer / card issuer would ever stop doing something profitable?
Your statement was true in 2005, but not today in the post-bailout era.
The best credit card offer for a college kid with no cosigner is a secured card with a $250 limit. Then after 5 or 6 months of being on time they might get bumped up to $500. Credit card companies have been stingy with limits since 2009.
I'm interested in what you're basing your opinion on, The9thDoctor. You're giving figures in USD, so I assume you're talking about U.S. colleges. I'm basing my opinion on what I observe on campus and what public university and private college students tell me directly every school year including this one.
Go to a site like CreditKarma.com and read the reviews for student credit cards. There are many that report an initial line of $500 - $1000 that gets bumped up to $1500 - $2500 in a matter of months. Capital One, lords of usary, usually does this unannounced for a student card after three months if it's being used. They must write off 30% of those (= sell to collection agencies) by the time the kids get out of school.
And in their usual logic-defying manner, competing banks are more likely to issue a card to a student that already has one despite tens of thousands in student loans.
Students from homes in affluent suburbs or those going to 'better' (=more expensive) schools get obscene limits. Students from blue-collar neighborhoods going to a technical college or treadmill public university don't get approved at all or get the $300 starter cards.
.
I've got a 8k$ credit card and earn 20k$ while at school. (debt free)
Those 250 and 500$ limits get raised quickly. (at least in Canada)
Maybe the Retail Federation was going to count gifted cars as holiday spend this year. That is the only way I see to approach their rosy 4.1% growth they are predicting.
https://nrf.com/media/press-releases/optimism-shines-national-retail-fed...
have been waiting for 9 months to buy three cars - used - for seasonal use
i will not buy until i can steal it - this market is coming in and once it does they will give the shit away for premium brands and models
wait to pull the trigger!
Need a car.
Price out the cost of a "used car" - Kelley's blue book.
Yes, you will be shocked about how little your rig is worth - I just dropped the collision coverage on my 11-year old Benz with 100,000 miles and in very good condition. I bought that rig used - 2 years old with 19,000 miles - never had a serious problem.
Why would anyone buy "new". You can get good deals on a used car still under full warranty - and, you can extend the warranty. That is benefit you get from the Fed program to let every human buy or lease a new car. Use car price can only continue to fall as repos come on the market.
But that used car doent have Siri integration, a back up camera, lane departure warning, collision avoidance, event data recorders, gps tracking and a mobile hotspot.
Oh yeah, thats why I buy used too.
My car doesn't even have power locks and windows.
One less thing to break and replace, and my arms never minded rolling down a window.
pods
"If your to damn lazy to roll down a window, you don't deserve any fresh air" Quote from my blue collar neighbor.
+1 I'm still driving a 14 year old Toyota I bought used, and I paid cash. I'm getting close to 250K miles and the thing runs like a trooper.
Buying a used car is a bit more tricky nowadays though, ever since Cash for Clunkers took all the cheap beaters off the market.
Up vote.
'95 Jeep Grand Cherokee, here. Almost 210,000. Paid $2200 for it, with a transmission rebuilt by a buddy of mine.
Meanwhile, my credit card company keeps sending me pre-approvals for car loans. What a joke. It's like 2005/2006, all over agian.
I can't wait 'til this joke of a financial situation takes a shit.
Still waiting for a disposable iCar with a sealed fuel tank.
The credit cards are owned by adults......and they are cutting back...the kids are maxing out on the car and student loans.....thinking they will never have to pay them back....they think that for the student loans for sure...that Obama will save them and make them go away....and he probably will.....and that is what is sad
What is sad is that from what I understand from youngsters is that these 'student loans' are being used primarily for financing living arrangements - i.e. just another welfare program.
I travel alot around the West Coast on business. Things are typically more upbeat out here than back East and Central. But even the Kool Aid drinkers are starting to doubt now.
The west coast is full of some of the biggest hypocrites I know. For example,....http://abcnews.go.com/US/wireStory/charity-report-ranks-states-cities-ge...
Absolutely. Fuck those young people with their "YOLO" attitudes to debt. Totally their fault, because all an economic transaction needs to occur is a buyer. Right? R-right?
Fucking young people.
(And in case you missed the sarcasm.. maybe the creditors should have some culpability in this?
Of course, as we all know, the older generations have no blame in this. Sunshine beams out of their arses. Except for the fact that:
- They made the young people.
- They allowed the massive 1980s financialization.
- They had unbridled growth prospects relative to today, which was mostly unlocked by piling on the debt.
- They are the politicians and bankers who are sabotaging future prospects in order to keep living the high life.
Though as much as I want to scapegoat, I cannot help but think that the one constant is how unbe-fucking-lievably stupid humans are collectively. That they truly believe that they can somehow shirk physics and moonshot growth to infinity. Somehow if you kick the can down the road enough, it will just start to move without any resistance at a constant rate, forever and always.)
I just decided to move to a country where it is illegal to garnish wages for student loan debt.
don't forget, about 1/3 of that is subprime... tick tick boom
Yup. Tick tick boom...
aaaand then we seize your parents assets.
That is more than half the Fed Balance Sheet liability increase. When these loans are paid back in full, QE will have been worth every penny!
Every fucking body around here drives a new car!
Life is great! Can't afford a house? Fuck it buy a car with your student loan son cause in 2 -3 years the Economy will be great!
Sure dad.
Indentured servitude.
All for a few shiny plastic knick-knacks and an opportunity to drink yourself silly, cuz hey, it's college, "bro"!
Based on the last chart, total non-revolving credit should be around $500 trillion in 2025. That'll do Pig. That'll do.
what difference does anything make anymore?
We are done, stick a fork in us. Most of the US population does not know whats happening and does not care, including Congress, Its a job for them. All they all want if their free money and benefits.
From the taxpayers which are quickly declining in number.
Free Free Free! Hell yeah! If the global population is still dumb enough to trust the USA with the global reserve currency, then fuck 'em.
The precedent has already been set: those who gamble with borrowed money are to receive immunity from fiscal failure. The fat-cat cronies already took the slices of the handout pie, now the roaches come out of the woodwork and beg their overlords for the crumbs.
You gotta love this thinking.
"I'm using my disposable income to pay down my credit card debt! But now I don't have any money to buy a car, so I took out a loan at 8.9% interest for 72 months because I have to get to work so I can pay down my credit card debt. But my job doesn't pay enough, so I'm going back to school so I can get a better job!"
Yeah, let's all trade debt incurred for stuff that in all likelihood won't be repossessed and that can be discharged in bankruptcy for debt incurred for something that will definitely be repossessed and some more debt that can't be discharged in bankruptcy.
'Murica, fuck yeah!
We will have two generations with student debt and car debt that will never qualify for a home loan...unless the rules change..and some crafty politician will change them to get the votes....and bring back sub sub subprime loans...pretty much welfare at that point...because they will never pay it back and will never be kicked out of the house again....
And when dead-beating on cars, why doesn’t the debtor call the lien holder and tell them to pick the car up out of the driveway today.
If not today, the debtor should state they are going to start charging the lien holder a day-rate for parking in the driveway. Then debtor places a second lien against the vehicle.
Eat cars, don't live
When did exponents (e.g. compounding interest) stop getting taught at public school?
This shit could have been avoided with a modicum of basic mathematical education.
it's ALL sub-priime too. Even the Bernank(e) can't qualify for prime.
in the 70s, i asked a black buddy why black people liked cadillacs so much and why they would buy a new car before they would buy a house. his response was you could live in a car but you couldn't drive your house to the store. i laughed my ass off at the clear logic.......he will be right for millions of people smart enought to save their car when they go homeless.
long 5th wheels...
Last chart...
=
EBOLA CHART???
Awww I misread the labels. So is that suspected or confirmed total non-revolving credit?
Pay off the Student Debt with Credit Card Debt and then stop paying the Credit Card Debt. It is the Government Approved method of dealing with the debt.
I heard a radio ad today that said if you are a teacher, police officer, fire fighter, you could get your student loan waived if you are having problems honoring the debt. I guess workers in the private sector don't qualify.
Don't worry. The private sector gets the privilege of paying for it.
My neighbor got a 57K loan to get an online degree in graphic arts, I says "what kind of interest rate did they give ya?" he says (I kid you not) "I dunno but I got a bitchen laptop too"
Yeah, hire him. Holy sh-t...
A big shift is occurring in what consumers are buying. Recently we are witnessing a shift from general consumer goods to more purchases of autos and healthcare. The first quarter GDP just came out down 1% yet these two sectors have been outperforming the economy. If indeed online and auto sales are roaring up double digits at the same time healthcare spending has increased 4.2% it is only fair to assume small business and someone else is taking a beating.
Interestingly, this is all occurring at a time the government continues to pour out billions of dollars each month in student loans, many of these loans will never be repaid. This is in a way its own "stimulus" package. This should be viewed as more proof we are on the wrong path, more on this subject in the article below.
http://brucewilds.blogspot.com/2014/05/consumption-of-autos-healthcare-a...
Globalism by definition is killing the American dream.
There is no America un the global community.
We need a strong Nationalist movement.
Or else it's finished.
There will soon be no difference between Sudan and America.
I hate diversity.