Student And Car Loans Go Exponential, Courtesy Of Uncle Sam

Tyler Durden's picture

Another month, another $14.5 billion increase in student and car loans, offset by a measly $1.4 billion in credit card debt, following last month's upward revised $200 million drop in revolving debt. Total consumer debt in September increase by $15.9 billion, just below the $16.0 billion estimate, and the problem is that with the Fed's credit injection fading, someone has to step on the borrowing pedal. Alas, if one takes away student and car loans, the credit creation is not nearly enough to push US consumption higher.

 

Revolving credit: the credit card buying spree from late spring is long gone. Compared the recent "recovery" period to the "healthy" credit card purchasing days of 2007 reveals that nothing is as it should be.

 

So it's all up to non-revolving credit, which continues to increase between $10 and $15 billion each month.

 

What's most troubling is that after several months of depository institutions funding the bulk of credit needs, the past two months have reverted to the old normal, where Uncle Sam is the sole provider of consumer credit.

 

In any event, the most amusing chart is the following. It simply screams sustainable.

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wallstreetaposteriori's picture

Agreed.  Slope could get a little bigger.  Hey now that gas prices are down people can borrow MOAR...

mjcOH1's picture

Give it time.   y=ax^2 +bx + c.   There's a new crop of entitled voting in 2 years.

kchrisc's picture

For those that recognize Obama as a tool of the CIA, and their Greater Israel masters, they know that this is by design, or at least a bonus.

If the DC US oil and shale patches crash, while attacking Russia, and Iran, via oil-prices, then that is more neo-con supporting fodder for 2016.

An American, not US subject.

 

For those wondering about Tuesday's puppet-selection day results, think back over the last 4 or five months and ask yourself if that was the behavior of an administration actually concerned with winning vs. losing--Obama is really a CIA and neo-con stooge.

economics9698's picture

Obama is a black ass shoved in the goys face.  A big FU to all the WASP out there. 

General Decline's picture

I enjoy your blunt, direct posts. Hope that didn't sound gay.

motor_angel's picture

my roomate's step-mother makes $75 hourly on the internet . She has been without a job for 5 months but last month her paycheck was $20377 just working on the internet for a few hours. Get More Info... www.Yelptrade.com

screw face's picture

thanks......nice chart porn

seek's picture

ZH was down hard about 5 minutes ago, and given it's a friday and the gold market got turbocharged into the close I had a heart attack thinking this was the big one.

False alarm. Whew.

willwork4food's picture

And I was thinking of cashing in some of my gold when I traded in my old 2013 model for the brand new 2015-just off the line diesel 4x4.

The boys in the hood will drool with envy.

Richard Chesler's picture

If you like your debasing currency you can keep it.

 

i_call_you_my_base's picture

That's one that will actually hold up.

himaroid's picture

"I drive a GM (GovMoto) Exponential."

"Cool man!"

"It blow'd up."

"Bummer man."

yogibear's picture

Them for folks on welfare, like illegals. Goes along with the Obama phone.

KFC going to offer the Obama Fried chicken special on election day for 2016?

ekm1's picture

Government ownership of means of production

AdvancingTime's picture

The big shift in what consumers are buying continues. Recently we are witnessing a shift from general consumer goods to more purchases of autos and healthcare. If indeed online and auto sales are roaring up double digits at the same time healthcare spending has increased substantially it is only fair to assume most small businesses or 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...

22winmag's picture

Wasn't this exponential a few months ago?

Old headlines never die.

starman's picture

We gonna have some smart little fucking graduates driving around in BMWs soon! 

Ah freedom and libety! 

kurzdump's picture

Perfectly ok if the number of students goes exponential as well. It doesn't? Well, then 'please do not worry'.

TruthInSunshine's picture

"Perfectly ok if the number of EMPLOYED GRADUATES OF COLLEGES EARNING A DECENT WAGE OR SALARY goes exponential as well. It doesn't? Well, then 'please do not worry'."

FIXED.

Motorhead's picture

Where's the hockey stick?  And, where's the Zamboni?

Consuelo's picture

So where is all the 'de-leveraging' supposedly taking place...? 

Jack Burton's picture

Education harbors most of the age group 18-25. Since no jobs exist for them, a large portion are farmed out to colleges, junior colleges, universites, technical universities and some good old fashioned trade schools. You would not believe how many kids are paying 30-50K to learn how to be cooks, of chefs if you will. A one year course can set you back 30K + in culinary arts.

In the all volunteer military, the one place most of us without money cold escape to is gone. Some from each High School class go in, but not like in the old days. So Education is where we house most kids while they while away years learning a lot of stuff. Were these kids dumped on the jobs market they would find nothing. So if we house them in college from 18-23, then that solves some of the unemployment problem.

BUT, the result is that the kids earn nothing while in school, while gaining debts that grow for every year they take to get a degree. The sad fact is that best case scenario a kid graduates with 30K debt and a college degree that leads to employmnet right away. The other cases are just bad, big debts and poor job prospects.

What I do see is an army of teachers, administrators and all the other staff that fill out a university staff. Hre where I live, there are 5 colleges and universties in a town of 88K population, though they draw off of a larger rural area. Still, these ar ethe folks with the new houses, nice cars and European vacations. Teaching is now big business. The best jobs outside health care are in teaching.

Lostinfortwalton's picture

It is simply amazing the number of college graduates who, not being able to find a job with a worthless major, will go right back and enroll in graduate school.in the same field.

Suisse's picture

The worthwhile engineering and computing fields require extensive prerequisites to be admitted into a master's program.

fzrkid's picture

When is ZH going public?