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Consumer Credit Has Biggest Jump In History, Led By Government-Funded Car And Student Loans
If there was any confusion where all those soaring new car sales are coming from, we now have the definitive answer: moments ago the latest consumer credit data for September was released, and surging by $28.9 billion - a 4.9% jump Y/Y - not only did this smash expectations of a "modest" $18 billion rise, this was the biggest monthly increase ever!
And while revolving credit rose a respectable $2.7 billion to $925 billion, still well below its historic high of $1.02 trillion...
... the monthly swing was all in the non-revolving credit, i.e., the student and car loans: soaring by $22.2 billion, this was the second biggest monthly jump on record.
The source? Drumroll - the US government, which on one hand laments the credit bubble it has created via ZIRP and QE and is eager to raise rates by 25 bps, and on the other is directly funding the biggest student and car debt bubble in history.
Presenting: the government bubble in all its glory.
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Is this real life?
As does the govt, so does the people. Hey wonder what would happen if the govt and the people all defaulted at once? That would be something else!
Venezuela #1 on that list.
"Is this real life?"
Yes it is,step up and eat your shit sandwich America!
What a crock of Shit!
ya -and this is why we got some jobs...
http://www.zerohedge.com/news/2015-11-06/most-surprising-thing-about-tod...
Ditch the car and the car loan.
I'd get saddle sores if i tried to ride like that :)
And probably arrested...
How many of you perv's would smell the seat?
probably wouldnt have to count as high if you asked "who wouldnt"
Yesterday, leaving work, I saw a big tattoed dude riding a bike. The sort of guy who looked like he should be a bouncer in a bar or in an MMA ring. As I passed by, I noticed he had the plumber thing going on with his jogging pants and underneath was a pink g-string.
Damn. I wasn't sure if I was just supposed to laugh, or drive into the nearest telephone pole, or both. Either way I can't unsee it. And, well, I need my car. So, might as well laugh. Hey, whatever floats his boat I suppose.
Ohhh no..
Careful with that bicycle...you might "hurt" yourself. (Don't Click ME)
I think I've seen her before. She peddles her ass around town.
Students + disability = the sponge absorbing all of the folks exiting the workforce.
Wring the sponge out onto the streets, and you get Ferguson. Everywhere.
WTF is a government car loan? Do members of the FSA army who have an Obamaphone get free car loans now also?
Most people who get "welfare" such as food stamps work. Nobody is getting a free ride. This image of the Cadillac welfare queen comes from political campaigns in the 1980's.
What can POSSIBLY go wrong.....
College students getting car loan. Double down.
For the children
You can live in your car....
Once these 7 year car loans are paid off .gov can do another cash for clunkers, rinse and repeat.
After seven years? I'm thinking they'll have a two year refinance extension program in place by then.
I also think that we will see a new college loan program created by Big Education and .gov that will provide loans to people that already went to college but never got a job with their degree. More money to help the children in their late 20s and 30s. Also Obamacare will allow "children" up to the age of 36 to be on their parents' insurance.
If no-one but the government had the earning power to take out those loans,
what makes people think that anyone but the government (and the printing press) can repay them?
Yo Mammy Obammy!!!!!!!!
Everyone knows that subprime Gubberment Student Loans, and subprime Auto Loans, always go up to infinity.
What's everyone getting their knickers in a knot over?
what happens when you go all in on a losing bet?
I'm keeping my clunker 2000 Buick with 200k plus. It's a real beast.
Nothing but a voluntary tax they hope they can collect.
They give out loans like candy.
Unfortunately we live in the age of consumerism and we are just made consumers. A lot of people are caught on a trap of having the newest and the best thing, so they can only find best payday lenders UK. Such financial assistance allows them to buy things they simply can’t afford on their salaries. And in such way many people are made dependent and can never get out of this financial debt hole. As for me I try to buy only the necessary things and plan all really expensive purchases.