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Fed's Household Credit Report Confirms It Is A Student And Car Loan "Recovery"
Earlier today the NY Fed released its quarterly, household credit report which is really just an Equifax spreadsheet where the links are hard-coded. We know this because about 8 months ago, the NY Fed intern (since seasonally-adjusted into pink-slip territory), released a #Reffing! spreadsheet that didn't even bother to remove the hard-links to said Equifax report.
So what did the latest data reveal? Well, in the final quarter of the year, total household debt supposedly rose by $117 billion, an increase of 1%. Some of the debt breakdown details. Pay attention to the deterioration in both student and car loan delinquency rates:
Housing Debt
- Originations, which we measure as appearances of new mortgage balances on consumer credit reports and which includes refinanced mortgages, increased slightly, to $355 billion, but remain low by historical standards.
- About 122,000 individuals had a new foreclosure notation added to their credit reports between October 1 and December 31.
- Mortgage delinquencies improved, with the share of mortgage balances 90 or more days delinquent decreasing slightly; 3.1% of mortgage balances were 90+ days delinquent during 2014Q4, compared to 3.2% in the previous quarter.
Student Loans, Credit Cards, and Auto Loans
- Outstanding student loan balances reported on credit reports increased to $1.16 trillion (+$31 billion) as of December 31, 2014, representing about $77 billion increase from one year ago.
- Student loan delinquency rates worsened in the 4th quarter. About 11.3% of aggregate student loan debt is 90+ days delinquent or in default in 2014Q4, up from 11.1% in the third quarter.
- Auto loan delinquency rates worsened. The 90+ days delinquency rate is now at 3.5%, up from 3.1% in the previous quarter.
Credit Inquiries
- The number of credit inquiries within six months – an indicator of consumer credit demand – increased by 4 million from the previous quarter, to 175 million.
And here is the increase in Q4 debt visually:
Of course, considering the actual micro-level data which saw substantial declines in mortgage origination, expect the mortgage debt number to be revised lower even as total student and auto loan debt rises.
Which brings us to the money chart: total household debt creation since the Lehman crisis. It speaks for itself.
Source: NY Fed
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#REF...that about sums it up!
That second to last chart is all 0.0's on the x-axis there.
Just do what they do in the Gov't and imagine what the numbers should be
translation; more debt!!!
So is this article saying Americans should start taking out other kinds of debt besides car loans and student loans? Is that the goal?
Maybe it shows kids are going to be living in their cars in college parking lots.
or a van... down by the river
Kill Whitey - "Get out the Vote" Chris Farley
What it really means is that young people went to college or bought a car and now they can pay back the loans they took out. This gives pretty well with the data that full time employment for those over 60 has been climbing.
Business is opting for experience over education given plenty of employees to choose from.
No, it means if you are going to default on your student loans, you will need a getaway car.
better be a really old one... there is a reason newer models can be remotely controlled
Those students will get a down-to-earth real life financial education too, for the price. Not sure they'll like it though...
" Yes we can ! "
Things are going swimmingly and I hear that the alligators are all vegans so no worries.....
New 9/11 Audio: FAA employees say Secret Service told them “Flight 93 hit Camp David”
So something was up when the demographics of car commercials changed drastically.
Yea, I miss the cars flying, sailing over canyons etc. But I really miss the idiots walking into the dealership like they have a tractor beam pulling on their heads.
You must mean that there are more of them with ever increasing frequency? That's what I see on the boob tube, lots more commericals telling people they ought to be driving a new car, no they DESERVE to drive a new car.
Never mind that the new cars can be hacked and 'crashed' into trees and such...and of course spied on. I would guess that any new car can be 'Samsunged' and conversations pilfered and sent to a third party (aka NSA) for safe keeping.
Give me old tech any day.
Nothing spells recovery like taking on more bad debt.......
Car loans are already murmured to be the next subprime crisis sweeping America.
I'm sure it will be ok because Americans need new cars to drive to all these new jobs that have been created!
The Fed is committed to never again having a crisis, at least one that can be prevented by the mere printing of money. America is too important for it to be stopped by something as trivial as money.
"We will never run out of money."
- Charles Rangel -
When all the adminstration offers is debt, you get more of it.
Who needs a home when you can live for just about free in a secion 8 hovel....
Here in NYC, low-income housing is actually pretty nice in a lot of cases. With all the tax-abatements over the past decade, there is a TON of low-income housing in very nice buildings.
PERFECT for someone working in the black market (cash) economy...!!
A friend of my wife just got a place through the lottery. She declares ~$20k/year (makes prob 2-3x that). She got a brand-new 2-bedroom with easily 1200sf (washer/dryer in unit, new everything).... paying $1500/month. My place is slightly better neighborhood (not much) and is a bit smaller... for $3750/month. Add in her SNAP benefits and lord knows what else she's getting. Not a bad gig.
Makes one consider working "below-the-line" instead of above it....
Not a bad gig? Yes for a leech. She loves skipping taxes but enjoys receiving tax benefits. No pride or self respect. But hey its NYC, fuh-get about-it.
It's called Liberal Hypocrisy. They don't pay the taxes they wish to impose on others. I'm sure she's a very caring democrat.
Be a man and report her to the irs.
"Be a man and report her to the irs."
That would be pretty dumb. Its sure to trigger an audit on himself if not jail time. Did you read the ZH article on Barry's war on Whistle blowers?
There are two bastions of "income" left for the more "destitute" in our great land...
one is student loans to go to a "college" that in many cases teach you nothing whatsoever and are merely fraudulant for profit businesses.
two is filing for social security disability benefits. Prove something, ANYTHING to receive some sort of money to try and "live" off!
When these two sources ultimately dry up it will be interesting to see how people "survive" with no options left on the table...
I can tell you what they'll do to survive, since I see it every day in my area: They'll live on the street, they'll carry what few possesions they have in a bundle or cart of some kind, and they'll shuffle from place to place, shelter to shelter, food kitchen to food kitchen. Some will hold cardboard signs by the side of the road and beg, most choose to try to be as invisible as possible.
It's horrifying, it's disgusting, and it's a sure sign that our society is failing badly. You cannot tell me that all of these people are homeless because they're losers. They're homeless because our society demands that people have jobs to earn income to have a basic living, and then has the gall to tell tens of millions of people "no jobs for you, sorry, and no benefits either, guess it sucks to be you."
I see legions of these people out on the streets every single day, and I'm seeing more every day, and I'm fucking sick of it; I want to see real help made available to these people, real services and real housing and real ways to help them get back on their feet and who the fuck cares if they're "earning" it or not? They're HUMAN BEINGS and if we don't have enough jobs for everyone then what are we supposed to tell those who don't get the few jobs that are available? "Go away and die quietly and don't bother the rest of us?" Oh yeah, THAT'S going to end up well.
"I see legions of these people out on the streets every single day, and I'm seeing more every day, and I'm fucking sick of it"
The Solution is easy: Why don't you donate every penny you earn to the gov't so that implement a "final" solution for these people.
Giving away your money to big gov't is just a way to make a few elites very rich and make everyone else slip into deep poverty. There has never, ever been a Big nanny state gov't that ever managed to end poverty.
I have a better solution: How about we ditch every one of these awful "free trade" treaties that we have with every lousy third-world hellhole on the planet, and instead bring back tariffs, like we had for the first two hundred years of the Republic? And how about we control our borders for real, and take those who hire illegals and send them to prison?
See, it's all about "supply and demand," right? So if you have law after law and treaty after treaty and practice after practice that increases the supply of labor while decreasing the demand for labor, eventually you take labor and make it worthless. Silly me, I'm one of those crazy people who believes in the idea that a fair day's work deserves a fair day's wage.
Escalade in the driveway, welfare check in the mail. Awww yeah.
Ahh yes, the good old "welfare mommas driving Cadillacs" meme from those wonderful Reagan years, those years that were so toxic that even a twisted nightmare like GHW Bush felt it necessary to distance himself from them by promising a "kinder, gentler America." Good to see those tired old Reagan-era wheezes still have life in them.
Say, how about you go and take a look at what people are actually getting nowadays in terms of "benefits." What's that you say, you're a single adult male? Too bad for you, you qualify for exactly NOTHING except possibly $160 a month in food stamps.
WOOT! Talk about a SCORE! Man, that's LIVING!
Yes, let us hate those evil parasites on food stamps, let us despise them, while turning a blind eye to the $50 BILLION a MONTH that was handed to the banksters for YEARS, for a total of about four TRILLION DOLLARS of FREE MONEY that was paid for by loading DEBT onto TAXPAYERS! Yes, it's those evil welfare mommas, that's the REAL problem!
I swear, it's like we have the bastard child of the Incredible Hulk and Dracula firmly affixed to our neck, sucking the blood out of us as fast as he possibly can, and people like you are pointing to a tick on our leg and screaming "KILL IT! IT'S SUCKING YOUR BLOOD!" Yes, it is, but I'm sorta thinking the GIANT MONSTER named WALL STREET that is CLAMPED ON OUR NECK and BLEEDING US OUT just might be a bigger problem? Possibly?
Live in your car, go to college. Double win!
Still have to pay them both...
That's for dumb people.
So more debt that is worth the least as collateral... A car and (most of the) college degrees... Great stuff
Out of interest, can you 'walk away' from car loans the same way as with morgage loans?
To re-enter the workforce, one must update and or acquire new skill sets
To acquire these skills one must attend classes at a location one must drive to
This is a little too much shit to ingest.
I believe it. The amount of brand spanking new, shiny big crew cab trucks around my neck of the woods in absolutely insane. They must be selling like hotcakes on those nice 84-months loans.
Automakers are cranking out luxury model crew cabs like crazy. Dodge just introduced their new Laramie Limited. Ford was early to the party with their Platinum edition. Must be nice when those trucks break down, and the loan is upside down.
Forwards comrades ! Consumption at all costs, neverming that iceberg, we can avoid it !
Big truck = 179 deduction.
Use it on your flower delivery route. 1099 job
Obama new no-fault healthcare, no-fault student, no-fault Houses, no-fault pensions, no-fault governement debt....just borrow it and don't worry about paying it back!
The auto and student loan expansions are the bubbles intentionally created by bank and gov't. to replace the failed housing bubble, which they created earlier to replace the failed dot.com bubble.
It's what authorities do.
All those English Majors and Ebonics Minors, plus all the PhDs in Ancient Alien Theology are gonna send this economy to da fuckin mooooon, baebaeeee!
Only 3 things are certain in life and that's debt, death, and taxes.
And oppression. 4 things.
Plus paying for pussy. That's for fucking certain.
Student loan debt now totals number two, behind mortgages. At a time when the marginal costs of providing a quality education ought to be falling due to the progress in information technology. What a scam. Should the Millenials ever figure out how badly the Boomers have looted their generation -- student loans being just one case in point -- they would be justified in declaing open season on us. Fortunately, they're more likely to remain as stupid as we raised them to be. "I'm proud of you kids!" he said. "Dolts," he thought...
What can they bubble up next?
No credit, no problem.
http://dealbook.nytimes.com/2015/01/26/investment-riches-built-on-auto-l...
84 month auto loans?
No problemo senor!
The economy will jump to 10% growth once Obamacare becomes fully implemented. It will suck every discretionary dollar out of the productive class, as designed.
just go into debt so u can give more to the masters of the universe
just go into debt so u can give more to the masters of the universe
just go into debt so u can give more to the masters of the universe
Cash for Clunkers and Cash for Community Colleges!!!!
Bullish!
The debts are worrying almost all people today. And I think it is not a surprise with the way of life we lead. We are living in the world of consumerism and are addicted to purchases. Also we make all big purchases in credit and we have no possibility to change this situation. Ordinary people have no possibility to buy a house with no mortgage, and students can not get education with no student loan. Moreover people should also be aware about the possibility to use Vancouver payday loan online service and understand all the consequences of such short-term obligation.