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Breaking Bad (Debt) - Episode One
Submitted by Jim Quinn via The Burning Platform blog,
“At this juncture, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained.” – Fed chairman, Ben Bernanke, Congressional testimony, March, 2007

“Capitalism without financial failure is not capitalism at all, but a kind of socialism for the rich.” – James Grant, Grant’s Interest Rate Observer
The Federal Reserve issued their fourth quarter Report on Household Debt and Credit last week to the sounds of silence in the mainstream media. There were minor press releases issued by the “professional” financial journalists regurgitating the Federal Reserve’s storyline. Actual analysis, connecting the dots, describing how the massive issuance of student loan and auto loan debt has produced a fake economic recovery, and how the accelerating default rates in auto loans and student loans will produce the next subprime debt implosion, were nowhere to be seen on CNBC, Bloomberg, the WSJ, or any other status quo propaganda media outlet. Their job is not to analyze or seek truth. Their job is to keep their government patrons and Wall Street advertisers happy, while keeping the masses sedated, misinformed, and pliable.
Luckily, the government hasn’t gained complete control over the internet yet, so dozens of truth telling blogs have done a phenomenal job zeroing in on the surge in defaults. The data in the report tells a multitude of tales conflicting with the “official story” sold to the public. The austerity storyline, economic recovery storyline, housing recovery storyline, and strong auto market storyline are all revealed to be fraudulent by the data in the report. Total household debt grew by $117 billion in the fourth quarter and $306 billion for the all of 2014. Non-housing debt in the 4th quarter of 2008, just as the last subprime debt created financial implosion began, was $2.71 trillion. After six years of supposed consumer austerity, total non-housing debt stands at a record $3.15 trillion. This is after hundreds of billions of the $2.71 trillion were written off and foisted upon the backs of taxpayers, by the Wall Street banks and their puppets at the Federal Reserve.

The corporate media talking heads cheer every increase in consumer debt as proof of economic recovery. In reality every increase in consumer debt is just another step towards another far worse economic breakdown. And the reason is simple. Real median household income is still below 1989 levels. The average American family hasn’t seen their income go up in 25 years. What they did see was their chains of debt get unbearably heavy. Non-housing consumer debt (credit card, auto, student loan, other) was $800 billion in 1989.
The 300% increase in consumer debt, while incomes stagnated, has created a zombie nation of debt slaves. And this doesn’t even take into account the quadrupling of mortgage debt from $2.2 trillion in 1989 to $8.7 trillion today. This isn’t Twelve Years a Slave; it’s Debt Slaves for Eternity. And who benefits? The Wall Street bankers, .1% oligarchs, and corporate fascists pulling the levers of government and society benefit. An economic and jobs recovery for working Americans is nowhere to be seen in the chart below.

Total debt on the balance sheet of American consumers (formerly known as citizens) now tops $11.8 trillion, up from the $11.1 trillion trough in 2013. The peak was “achieved” in a frenzy of $0 down McMansion buying, Lexus leasing, and Home Equity ATM extraction in 2008, when the total reached $12.7 trillion. The $1.6 trillion decline from peak insanity had nothing to do with austerity or Americans reigning in their debt financed lifestyles.
The Wall Street banks took the $700 billion of taxpayer funded TARP, sold their worthless mortgage paper to the Fed, suckled on the Fed’s QE and ZIRP, and wrote off the $1.6 trillion. Wall Street didn’t miss a beat, while Main Street got treated like skeet during a shooting competition. Every solution proposed and implemented since September 2008 had the sole purpose of benefitting the criminals on Wall Street who perpetrated the largest financial heist in world history. The slogan should have been Bankers Saving Bankers Since 1913.

The average American benefited in no way from the government/banker bailout. Their wages have deteriorated, their daily living expenses have risen, Obamacare has resulted in higher healthcare premiums, higher co-pays, more part-time jobs, less full-time jobs, and less healthcare choices for the working class, while Wall Street generates billions in risk free profits, bankers and corporate executives reap massive million dollar bonuses, and the .1% parties like its 1999. Rising wealth inequality has been systematically programmed into our economic system by bankers and their bought off puppet politicians in Washington D.C. – Corporate fascism at its finest.
The lack of real economic recovery for the average American has been purposely masked through the issuance of $500 billion of subprime student loan debt and $200 billion of auto loan debt (much of it subprime) since 2010 by the Federal government and their co-conspirators on Wall Street.

The issuance of debt by the government to people not financially able to repay that debt, in order to generate economic activity and boost GDP is nothing more than fraudulent inducement using taxpayer funds. Debt financed purchases is not wealth. Debt financed consumption does not boost the wealth of the nation. If adding debt produced economic advancement, why has the number of Americans on food stamps escalated from 33 million in 2009 to 46 million today during a five year economic recovery? Why have 10 million Americans left the labor force since 2009, pushing the labor participation rate to 30 year lows, during a jobs recovery?
Why have social benefits distributed by the Federal government surged by $2.5 trillion since 2012, reaching a record high of 20.8% of real disposable income? It resides 33% above 2007 levels and still above levels during the depths of the recession in 2009. But at least the stock market hits record highs on a daily basis, creating joy in NYC penthouse suites and Hamptons ocean front estates. American dream for the .1% achieved.
Does this look like Recovery?
When you actually dig into the 31 page Federal Reserve produced report, anyone with a few functioning brain cells (this eliminates all CNBC bimbos, shills, and cheerleaders), can see our current economic paradigm is far from normal and an economic recovery has not materialized. Record stock market prices and corporate profits have not trickled down to Main Street. Janet, don’t piss down my back and tell me it’s raining (credit to Fletcher in Outlaw Josey Wales). The mainstream media spin fails to mention that $706 billion of consumer debt is currently delinquent. That is 6% of all consumer debt.
Could the Wall Street banks withstand that level of losses with their highly leveraged insolvent balance sheets? The number of foreclosures and consumer bankruptcies rose in the fourth quarter versus the third quarter. Does this happen during an economic recovery? Donghoon Lee, research officer at the Federal Reserve Bank of New York, may be looking for a new job soon. When a Federal Reserve lackey actually admits to being worried, you know things are about to get very bad very fast.
“Although we’ve seen an overall improvement in delinquency rates since the Great Recession, the increasing trend in student loan balances and delinquencies is concerning. Student loan delinquencies and repayment problems appear to be reducing borrowers’ ability to form their own households.”
And he didn’t even mention the increase in auto loan delinquencies which will eventually morph into a landslide of bad debt write-offs, repossessions, and Wall Street bankers demanding another bailout. The pure data in the Fed report doesn’t tell the true story. The $306 billion increase in outstanding debt only represents a 2.7% annual increase. And even though mortgage debt increased by $121 billion, it was on a base of $8.17 trillion. That is a miniscule 1.5% increase. A critical thinking individual might wonder how national home prices could rise by 25% since the beginning of 2012, while mortgage debt outstanding has fallen by $220 billion over this same time frame, and mortgage originations are hovering at 1997 levels.

It couldn’t have been the Wall Street/Fed/Treasury Dept. withhold foreclosures from the market, sell to hedge funds and convert to rental units, and screw the first time home buyer scheme to super charge Wall Street profits and artificially boost home prices. Could it? New home sales prices and new home sales were tightly correlated from 1990 through 2006. Then the bottom fell out in 2006 and new homes sales crashed. Nine years later new home sales still linger at 1991 recession levels. New home sales are 65% lower than they were in 2005, but median prices are 20% higher. This is utterly ridiculous.
If prices had fallen to the $100,000 to $150,000 level, based on the historical correlation, first time home buyers would be buying hand over foot. But the Federal Reserve, their Wall Street owners, connected hedge funds, and the Federal government has created an artificial price bubble with 0% interest rates and trillions of QE heroin. The 1% can still afford to buy overpriced McMansions, but the young are left saddled with student loan debt, low paying service jobs, and no chance at ever owning a home.

The chart that puts this economic recovery in perspective is their 90+ days delinquent by loan type. If you haven’t made a payment in 90 days or more, the odds are you aren’t going to pay. The Fed and the ever positive corporate media, who rely on advertising revenue from Wall Street, the auto industry, and the government, go to any lengths to spin awful data into gold. Their current storyline is to compare delinquency levels to the levels in 2009 at the height of the worst recession since the 1930s. Mortgage delinquencies have fallen from 8.9% in 2010 to 3.2% today (amazing what writing off $1 trillion of bad mortgages can achieve), but they are three times higher than the 1% average before the financial meltdown. Is that a return to normalcy? Home equity lines of credit had delinquency rates of 0.2% prior to the 2008 meltdown. Today they sit at 3.2%, only sixteen times higher than before the crisis. Is that a return to normalcy? Do these facts scream “housing recovery”?
The outlier on the chart is credit card delinquencies. The normal, pre-crisis level hovered between 9% and 10%. Banks can handle that level when they are charging 18% interest while borrowing at .25% interest. During the Wall Street created recession, delinquencies spiked to 13.7%, but after writing off about $150 billion of bad debt and closing 100 million credit card accounts, delinquencies miraculously began to plunge. Delinquencies have plunged to 7.3% as credit card debt still sits $170 billion below the 2008 peak. This is a reflection of Americans depending on their credit cards to survive their everyday existence.
With stagnant real wages and household income 7% below 2008 levels, the average family is using their credit cards to pay for food, energy, clothing, utilities, taxes, and medical expenses. They are making the minimum payments and staying current on their payment obligations because their credit cards are the only thing keeping them from having to live in a cardboard box. A Bankrate.com survey this week revealed 37% of Americans have credit card debt that equals or is greater than their emergency savings, leaving them “teetering on the edge of financial disaster.” Greg McBride, Bankrate.com’s chief financial analyst sums up the situation:
“Not only do most of them not have enough savings, they’ve all used up some portion of their available credit — they are running out of options. People don’t have enough money for unplanned expenses, and if they have more credit card debt than emergency savings, it’s a double whammy. In the event of unplanned expenses, their options are limited.”
Who doesn’t have an unplanned expense multiple times in a year? A major car repair, appliance repair, hot water heater failure, or a medical issue is utterly predictable and most people are unprepared to financially deal with them. As many people found in 2009, credit card lines can be reduced in the blink of an eye by the Wall Street banks. This potential for financial disaster is why Americans are doing everything they can to stay current on their credit card payments. That brings us to the Federal Reserve/Federal Government created mal-investment subprime boom 2.0, which is in the early stages of going bust.
I’ll address the Subprime bust 2.0 in part two of this article.
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What else is new? Now, how about a story about the enforcers, the hit teams that kill anyone who can upset the criminal empire, from Michael Hastings to those 2 former SEALs murdered on the Maersk Alabama for knowing too much about the Boston Bombing Obama op. No, stick to Captain Obvious stories. The Oval Office is sacrosanct.
At least you can still speak of these things, friend! Soon, thanks to net neutrality, the most controversial topic you will be allowed to discuss is whether Justin Bieber has an innie or an outtie.
Thanks, Jim. How many different ways are you going to write the same fucking article?
I am Chumbawamba.
Just more SmokeyQuinn drivel as the real world melts down around him.
I'm still waiting for his 9/11 Magnum opus were he explains his moronic understanding of scientific reality.
https://www.corbettreport.com/911-a-conspiracy-theory/
It's been years now since he has had the balls to comment on ZH.
Thus he once again FAILS!
https://www.youtube.com/watch?v=p6O4LE0eTYc
What is this Jim guy blathering about? He must still live in his moms basement. I own my own home because I worked hard and invested in stocks and got rich. Let the lazy do nothing millenials eat food stamps for all I care.
https://www.youtube.com/watch?v=yloaBw80fV4
One of the better 'I got mine, so fuck all ya'all" I've heard in a while.
Gumm this.
Edit, 1 red. Gummer must have come back.
my co-worker's mom makes $87 an hour on the laptop . She has been without work for 8 months but last month her pay check was $15653 just working on the laptop for a few hours. try this website... www.globe-report.com
conspiracy theorists always loose
Property tax will be the guter spike in the coffin of real estate
Agreed. Paper wealth is where it's at. Even the Chinese are starting to understand that.
Precisely. You think you own your house? Try not paying your taxes for a couple of months.
.
This Keynesian lies with each breath
The money he prints is like meth
The world is afflicted
To debt we're addicted
And nations will soon meet their death
The Limerick King
Every breath you take - the Fed edition.
https://www.youtube.com/watch?v=ipJTqCbETog
"It's the New Normal", as quoted by the X Pimco Employee.
After reading the above, Im glad Im able to continue working while collecting my SS and Pension from another job. With my combined income I finally made it to the middle class. Im also in the market for a new truck but will delay this purchase also as my 2003 Chevy Silverado with 76,000 miles on it still runs fine. Oh and don't bash me for continuing to work, Im still paying into the SS fund so Im actually helping to keep it solvent for at least another day or two. lol
About 3 minutes, actually, bit your contribution is appreciated, comrade.
I was reading the wiki article on Thomas De Quincey and discovered that he had debt problems for his whole life. He spent quite some time sheltering in Holyrood debtor's haven to avoid being sent to debtor's prison. However, he eventually left the debtor's sanctuary to escape from debts he incurred while staying there!
Moral of this story is that no matter how sub prime the loan is, someone is always going to lend the money. You wouldn't think it makes any sense lending money to people who are living as vagrants in a park that doubles as a debtor's haven. But it happened!
Soon as I sell my house I'll be debt free, never looking back.
corporate fascism a redundancy. just plain fascism.
Over in my neck of the woods, quite a number of $300k houses get taken off the market, then relisted, then taken off the market, then relisted again. Same houses for the past 2 years.
The price almost never changes too. Nobody has the money for a mortgage to buy those houses and still afford to eat after the monthly nut. It's a zombie market out there.
"Household"? You mean rentalhold?
reports, 10,000 pages, very complex.
and written in the dialect of financial
legalese. impenetrable at the practical
realm by structure and design.
.
this is commonly known to be "udder and utter bullshit".
.
a blunt and bludgeoning instrument of murder.
.
anyway ...
Elizabeth Warren Destroys Janet Yellen Over JPMorgan's 'Living Will'
https://www.youtube.com/watch?v=XYtSMLgaW6U
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plan to break bad is impenetrable by design and
here described. it is a story of a power grab, naked.
private, public, call it what you like,
there it is.
" Just walk away. "
Here's the letter 15 students refusing to pay their federal loans wrote to the Department of Educationhttp://finance.yahoo.com/news/heres-letter-15-students-refusing-15432906...
As more students, car loan recipients, tenants, debtors, etc say "No!" to creditors, debt collectors, Landlords, etc the system will gain momentum and climax in a serious collapse with a crisis 100x worse then 2008 some say.
Dear Corinthian 15,
Have you learned to stop voting for Obama yet, or do you need further training. We are preparing more advanced courses is "applicable fairness" and we would be happy to assist you in participating.
Sincerely,
.gov
Creditor: Fuck you pay me
Debtor: Fuck you, blow me
I believe that the legalese term for student debt is "onerous debt". Because, that's what it is. It's debt incurred by innocent students attending a RICO-based, Racketeering In Corrupt Organization, educational system. RICO is Federal Felony. In this instance, the Federal Government is a party in the RICO conspiracy.
This is how it works:
1. The US Supreme Court, all lawyers mind you, essentially makes it impossible for employers to give prospective new employees, without extensive work experience, hiring tests without being sued, sued, and sued some more just for good measure, by their fellow lawyer friends.
2. Corporations began to require any sort of 4-year degrees for jobs because they could no longer give a test to a prospective employee without threat of lawsuit. Therefore, someone with a 4-year degree in music appreciation is now qualified for a computer analysts position. [This is TRUE from my own personal experience. I am not making this up!]
3. The degree must be from an accredited educational institution. Getting accredited is as easy as, say, obtaining a concealed carry firearms license in New York City. [You may freely apply for one by filling out long reams of forms in quadruplicate carbon copies, submitting fingerprints, undergoing a lengthy background investigation, undergoing interviews by hostile police officials and at the end, say 9-to-12 months later, receive the expected response: an automatic NO. Unless, one is a member of the elite, rich establishment, in which case your bodyguards already have the requisite authority to carry concealed firearms of all sorts.] The Internet and streaming video technology as well as access to almost all of the world's knowledge via various Internet libraries has already rendered brick and mortar colleges and universities obsolete re: learning and receiving traditional degrees. There are many well qualified professors and non-academic professionals from industry and outside of academia who could give courses as well or better than their counterparts in the halls of academia. They have a way to go in solving the problem of coming together in physical laboratories in order to perform costly experimentation. However, there are many computer simulation programs that could solve part of that problem. It's the tight control over the accreditation process that allows rent-seeking colleges and universities to charge upwards of $200,000 to $250,000 and beyond for a traditional 4-year BA or BS degree, then add at least another $50,000 for an MA or MS plus another $50,000 for a PhD degree. These are costs at the most prestigious universities and colleges where it's not the education so much that matters anyway. It's making the first of what will be lifelong connections amongst ones fellow elitists that is so sought after. Because, when all is said and done, in today's Lying States of America, it's not what you know, it's whom you know and by whom you are known.
4. There is no bank in existence that would give student loans of the magnitude cited above, to students pursuing degrees for which there is little or no market, hence leading to very high default rates, where even if the graduate gains employment based on her degree her salary will be insufficient to repay the principal faster than the interest increases the total loan amount. [Don't laugh. I know a man, a disabled Vietnam veteran, in that predicament. He took out a $15,000 student loan 18 years ago. He's been paying the initially required amount regularly every month. The total loan payoff amount is now over $40,000.] therefore, the Federal government guaranteed or co-signed on the loans to entice the banks to make them. The Federal government in its beneficence and concern for, no not the students, the banks made student loans non-discharchable through the bankruptcy process.
5. The banks realized that they had been given a "heads we win", "tails the taxpayers lose" coin flip profit making opportunity. They began actively pursuing gullible students at colleges and universities nationwide to underwrite their expenses such as tuition, books, Easter breaks at Fort Lauderdale beaches (or why not Cancun?), etc.
6. The colleges and universities began ratcheting up what they charged students at rates far exceeding the overall CPI, whether you use the lying understated US Federal government's CPI or John Williams more reasonable ShadowStats.com CPI. [About a year after the Vietnam War ended, in 1976 I was discharged from active duty in the US Marine Corps and began going to University in Miami. My GI Bill benefits were helpful but insufficient to pay for everything. Fortunately, I was able to live with my parents. I had grown up in the military. Dad was retired from 30-years in the USN (WW II) and USAF (Koean and Vietnam Wars). After looking for work for a long time I finally found work part-time at a company importing Japanese-made amateur operator FM transceivers. I had a lot of work there because their radio quality was quite poor. I was taking full-time course loads of 15-credit hours at Florida International University that may have cost $10 or $15 per credit hour—assuming I can trust my memory. My ex-wife is a professional employed by the University of Florida and she completed her Masters degree at the UF. There a 2-credit hour lab for her cost $1,250 in 2010. She needed to take two courses that were only several credit hours each and with her professional discount it still cost $1,275 for each one. With those kinds of university credit hour costs coupled with how stingy Uncle Sam is with Veterans Educational benefits it's hard for me to understand how an Iraqi or Afghani Wars Vetern could afford any university. It seems like LPOTUS is literally throwing money at illegal immigrants while telling recent war veterans and wounded warriors to get lost.
7. Entrepreneurial colleges and universities saw the opportunities that Federal Student Loan guarantees combined with the Internet and their accreditation formed a lucrative Internet distance learning market alternative. Other entrepreneurs without any of the bricks and mortar overhead of the traditional classroom-based college/university saw the lucrative profit-making opportunities and somehow made it through the accreditation process and began offering distance learning in all sorts of fields and specialties regardless of market demand for graduates with those degrees.
8. It's once again the perfect system created by the Federal government. The first party, the student, receives benefits from a second party, the college or university, paid for via a student loan received from a third party, a bank, for which the first party, the student, is required to repay, but in the event of default, the third party is indemnified against loss by the fourth party, the Federal government.
9. Is it any wonder that student loans are growing so fast and have quickly surpassed $1,000,000,000,000 ($1 trillion)?
SUMMARY
Does it surprise you that none of the above appears on the Federal governments books as a liability? The Federal government would prosecute any company or corporation for failure to include a liability this stupendous in either their quarterly or annual SEC filings. That's because the Federal government requires that companies and corporations comply with Generally Accepted Acounting Principles (GAAP). But, GAAP accounting statements would reveal that politicians like President Woodrow "Federal Reserve Act of 1913 Signatory" Wilson, President Franklin Delano "Too Many Socialist Acts to Count" Roosevelt, President Lyndon "Bomb North Vietnam back into the Stone Age—No, Stop Right Now! We Almost Won. Now saturate Vietnam with chemical toxins like Agents Orange, Purple, Pink, all the colors of the rainbow! Oh, and start the Great Society Program to destroy family marriages and make them all dependent on government handouts." Johnson, President Richard "Cut spending to reduce the worldwide supply of dollars and thereby stop the outflow of Gold from Fort Knox? Or, take the easy way out and sever the convertibility of dollars into gold by sovereign nations, especially America-hating President Charles De Gaulle of France?" Nixon. I could go on. But, I won't.
According to John Williams' ShadowStats.com the United States GAAP debt and liabilities were $92,300,000,000,000 ($92.3 trillion) at end of fiscal year 2013 (September 30th). And US GDP was only about $10,000,000,000,000 ($10 trillion) due to deliberate and chronic understatement of inflation. So, on a GAAP basis the US debt and liabilities to GDP ratio is about 9:1. Without a hyperinflationary blowoff to destroy the dollar, and with it dollar-based debts, the US can never, ever pay it's debt and make good on its liabilities. Liabilities like Social Security, Mdicare, Medicaid, Aid To Families with Dependent Children, Food Stamps for the current 50,000,000 Americans dependent on them for some or all of their food, etc.
Really, I am not a gloom and doom person. We could have solved these problems under a concerted effort if President George W. Bush had not been fixated on invading Iraq and removing Saddam Hussein from power. But, after Iraq, Afghanistan and 6 years of LPOTUS or AOTUS (Ayatollah Of The United States) the future is looking mighty grim.
But, AOTLS (Ayatollah Of The Lying States must be fixated on destroying the United States both economically, financially, militarily and as one nation. That's what I glean from his actions. It's only his actions and the actions of his subordinates that matter—because they all LIE! Would the Main Stream Media Talking Head Liars have let anyone excepting Obama get elected without a very serious background investigation considering that a 1991 promotional booklet by his then-literary agency, Acton & Dystel, identified him as having been born in Kenya?
Man I live where there are several military bases and other government stuff and the place is booming... Drove by all the downtown restaurants,,, all jam packed full. Mall is full, as is most other stores. In the poorer areas there is sign of distress but not too bad.
My point is, these government buffoons are living in a false reality. They really think it's booming even though many parts of the nation not smothered in government money are dying.
We really need a reset but they're not gona allow it until the whole shebang crashes under it's own weight. I hope I have passed over by then as it is gonna be some real serious shit,,, as can be seen by government beefing up the police departments to military operational levels.
Unless you hurry up and shoot yourself STAT, you won't have passed over until the whole shebang crashes under it's own weight.
Do you know you can't get rid of a Govt employee once hired
Govt bloat will take 20 years to return to a normal % of population.
It's all in the plan.
If you want to experience shang-ri-la, drive into DC. Tower cranes almost equal to a Chinese city.
Wealth exists in concentric circles, bullseye, Capitol Hill.
And it flattens out, to yo get near Aberdeeen Proving Ground. Another .gov injected growth area.
In my little neck of the woods, The State Dept had plans to purchase 300 acres, and spend $500 million on a state of the art training facility. It was a done deal, and our Senator, Little Babs Mikulski, was gloating about the coup. Bleat, bleat , bleat. Until the locals got together, and complained their home values would go down and our rural farm life would be destroyed.
The . Gov was incredulous. WTF?
Then Babs changed direction, like a good windsock, and rallied what a destructive project this would be. How dare the big federal gov come in and ruin this quaint and charming ( and dead) area. Other locals started clamor ing for this project, like wtf is wrong with these rubes? I don't know if anything ever got built, but it would have been a game changer here.
This .gov money is like duffel bags of her ion and coke laid at your feet. Or, to stick with the theme, a 55 gallon drum of Crystal Blue Persuasion.
Everyone seems to believe in a trickle down effect that is not evident in third world countries where the rich stay rich and the poor stay poor.
No one mentions the much more obvious trickle up effect.
a) Those with excess capital invest it and collect interest and rent.
b) Those with insufficient capital borrow money and pay interest and rent.
This explains rising inequality and why wealth concentrates in certain families.
When you inherit enough there is no need to work at all, you just live off your inherited wealth as Europe's aristocracy have been doing for centuries.
The US is probably not familiar with the term old money, you soon will be.
The Duke of Westminster tops the UK rich list, he inherited the lot.
Some families can trace their position at the top of UK society back to the Battle of Hastings in 1066.
Old money lasts.
The host is sucking off the parasites last net worth before a new global currency is declared. That’s the plan folks…
The new global currency is the dollar. IMO, that's the plan. Which currency is prevailing ATM?
Look no further than to see that banks are borrowing from The Fed window at .75% while putting money out on the street with their credit cards at 22%.
Add in Late fees, annual renewal fees and cash advance fees and Tony Soprano would be envious of their scam.
And it's not like banks tier interest rates based on risk. 22% is the going rate, regardless of whether you have a credit score of 500 or 800.
How's that for "Reality Detachment"?
Add on top of all of this, at least when debt is issued for a house or car, something tangible is brought into existence.
With student loan debt, maybe not so much? I don't wish to argue an education is not valuable, but with our technology, transferring all this wealth to college campi and tenured professors, in exchange for a piece of paper is a crime.
Mark my words, some future "Obama" type is going to make his or her bones forgiving this debt.
I'll have these kids voting ( fill in the blank) for the next hundred years.
They already are forgiving 100% of Student Loan Debt if you work for the Govt for +-4 years!
Get the fuck out a here! Really? Debt forgiveness? Do they still get gold salary and platinum pension?
There will only be debt forgiveness if you are a true Liberal (D) chained to the government entitlements (and your voting rights) for all eternity. Net neutrality will certainly help control Druge, Zero Hedge, and the rest and at least let them get a solid list of who is spreading such nonsense "willy nilly all over their internet". The thought of that AOL commercial still creeps me out.
It has always amazed me how government nomenclature does the opposite of what is intended. For instance, net neutrality is gonna grant monopolistic and governmental controls on the internet. The war on terror is terror and creates more terrorists. The war on poverty created more poverty. The war on drugs created narco states and a huge prisons complex and bureaucracies to facilitate it (DEA, local law enfircement, etc). The Patriot Act destroyed our freedom.
An interesting subject that has not been addressed is the chart of real estate prices & sales volume over time. That is a MASSIVE distortion in the market place as indeed the marketplace situation is odd w/ banks hoarding cash flow negative inventory of foreclsed homes for years now to manipulate prices higher.
That said the chart (with data source not mentioned) is rubbish. Yes prices have risen to somewhere around pre-crisis levels. But I seem to recall the drop in prices was more like 50-60% then 20%. So how can we trust any of this data including transaction volumes?
Then again I ain't no realtor or economic stool pigeon WTF do I know. Oh wait, there's what I can observe in my neighborhood.
Charts and graphs have never influenced my life. They seem to take the fun out of living.
Better call Saul.
Half the lawyers are stupid, the other half are crooks.