At Over $2.5 Trillion, US Student And Auto Loans Hit New All Time High

Tyler Durden's picture

Following a burst in consumer credit growth in the past few months, driven by both revolving, or credit card, debt as well as non-revolving auto and student loans, in December the US consumer took a breather, and total consumer credit grew by only $14.2 billion, nearly half of last month's $25.2 billion, and lowest monthly increase since February.

Despite the modest slowdown, total US credit card debt was just a fraction away from $1 trillion, and just a few months away from regaining its previous record of $1.02 trillion attained just prior to the last financial crisis.

But while US consumers may have stepped back from a credit-card funded splurge in the last month of 2016, the far more troubling trend in student and auto loans remains, and as the following chart shows, as of Q4, both car and student debt hit all time highs of $1.407 trillion and $1.11 trillion, respectively.

Unless the Trump administration somehow finds a way to contain the unbridled expansion of "cheap" student debt, which is encumbering an entire generation with loans that can never be paid off, we are confident that it will be virtually impossible for the US economy to truly undergo a sustained period of strong growth in the foreseeable future.

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pathosattrition's picture

What could go wrong?

BorisTheBlade's picture

They will blame Trump for this.

Shocker's picture

Yup, even though its been going on for years and years

Layoff List: http://www.dailyjobcuts.com

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MalteseFalcon's picture

These students have money for tattos and trilby hats.

CheapBastard's picture

"It's Trump's fault!"

 

Like that?

sixsigma cygnusatratus's picture

Crap.  I just refi'd my 2006 Prius for $275,000 to finally pay for a double PhD in Human Development/Family Studies and Therapeutic Recreation.

Seemed like a sure bet...

Wulfkind's picture

Yes...Trump will get blamed by rhe Left.  But you Trumptards will NOT blame him for lying to you about MAGA.  The conclusion about this data is correct. Along with the fact that cheap energy is over and the Federal Reserve is still alive and the Goldmanites are getting deregulation again....all point the fact that American will not and could not EVER be great again.

And you fucking fools bought Trump's bullshit....just because you thought he was going to be better than Hitlery the Cunt.

Hey....what's that sound?  I hear tanks rolling into Estonia.  And I hear laughter from the Goldmanites.

SonsOfLibertyReborn's picture

Trump is better than Hillary. But, yes, he sucks in many many ways. But so long as he deports the illegal welfare-leech Hispanics and stops fundamentalist Muslims from coming in, that gives the US citizens time to create the beautiful fascist organizations that will ban GLBT, porn, and begin dismantling feminism, cultural Marxism, and Jewish influence. Then, white reproduction and moral/social regeneration can begin.

Mass college education, the stranglehold of the LEFT and the prime indoctination factory of the youth, is on its last legs. Wonderful! Celebrate this! When it goes, we gain the advantage. Victory is a long shot but its the only shot we have. One nation, one people. No more multiculturalism. No more pretending the races are equal or that men and women are equal. Effective specialization, not inefficient enforced equality, iso ur battle cry. Truth, not political correctness.

Trump is the first step in this thousand mile journey. But he is still the first step. Many people are sounding the truth about cultural Marxism and the anti-American Jewish influence. We are waking people up and organizing. Join the education and organizing process rather than complaining. You will like it much better. Victory or death! Embrace your destiny!

Identityevropa.com

TeethVillage88s's picture

just checking his numbers: 1.4 + 1.112 = 2.518 since we are all waiting with baited breath.

Student Loans Owned and Securitized, Outstanding (SLOAS)
Q4 2016: 1,406.8576 Billions of Dollars, Not Seasonally Adjusted, Quarterly,

Motor Vehicle Loans Owned and Securitized, Outstanding (MVLOAS)
Observation:
Q4 2016: 1,112.4821 Billions of Dollars, Not Seasonally Adjusted, Quarterly,

CheapBastard's picture

Do not bail them out with taxpayer money. Do not guarantee these loans.

Let the underwriters---colleges, auto companies etc -- take the hit since they are the ones who made the loans. Student loan defaults should be paid from teacher's pension funds and/or present salary reductions and/or that college's endowment.

TeethVillage88s's picture

Santander is big in Auto Loans and they aren't the only foreign bank.

So, are we still bailing out foreign banks since their Agents are Lobbying the State Dept and Congress?

SonsOfLibertyReborn's picture

Yes, absolutely, we need to cripple the leftist snowflakes who just got 100,000 of debt for women's studies. Teach them a lesson they will never forget. You play with Marxist fire, prepare to be burned!

Rainman's picture

There you have it, comrades,... there is no growth without credit growth. Amen.

BigFatUglyBubble's picture

DJT talks about Meds being too expensive, but what about college?  Please Mr. President, tweet, "the tuition is too damn high!"

When pigs fly, right?

CheapBastard's picture

One of my former anthropology teachers has a sprawling 4,000 sf house in his home city three blocks from the uni, and a 3,800 sf house in Aspen.

All paid for on top of lifetime healthy benefits (and NOT Obamacare) plus a generous pension.

jus' say'n

Vuke's picture

Did he invest his pennies in gold stocks?  Turned out well for me......

Seasmoke's picture

I'm sure Trump University was priced just right. 

angry_dad's picture
angry_dad (not verified) Seasmoke Feb 7, 2017 8:10 PM

At least TRUMP U had some semblance of credability

Only the F students are complaining.

The clinton's took in over $15 MILLION from for profit schools while handling them back over 60 million in gov't contracts.

How many people were successful after graduating from Crooked U?

barysenter's picture

Nice big fat shackles you put on yourselves, goyim.

SonsOfLibertyReborn's picture

By the grace and power of Almighty God, we will grow strong, tear the shackles off and use the chains to strangle our oppressors. Victory or death!

identityevropa.com

Anon2017's picture

For the time being, the banks are a lot safer than following the dodgy recommendations of investment newsletters.

skunzie's picture

Debt jubileeeeeeeeeeeeeeeeeeeeeeeeeeee for everyone!!!!!!!!!   NOT.

moorewasthebestbond's picture

Max out your credit cards with PMs right before it all goes boom!

Seasmoke's picture

Been doing that since 2011. The debt collectors calls are annoying. But that's the price to pay of being too early. 

HRH Feant's picture
HRH Feant (not verified) Feb 7, 2017 5:14 PM

At least with an auto there is something to repossess and resell. WTF do you do with someone that has a degree in navel gazing that cost $50,000 to $100,000 and they can't get a job? Do these idiots know that their wages can be garnished for life by the IRS? Do the parents and grandparents that co-signed on these loans know their SS benefits can be confiscated to pay for their ne'er-do-well offspring?

Delaware Dick's picture

Hmmm... Breitbart reports that 31% of Gov't assets are student debt.

http://www.breitbart.com/big-government/2016/02/27/37-of-us-gov-assets-a...

Still wanna see the students all default on their loans?

HRH Feant's picture
HRH Feant (not verified) Delaware Dick Feb 7, 2017 5:19 PM

The US government owns lots of property. I say it is time to reverse some of the BLM (Bureau of Land Management) land grabs of the past 8 years and start selling off that land to citizens. Allow drilling off shore and in Alaska. Allow mining. Allow citizens to reap the benefits of the resources. I am sick and tired of the leftist envirowackos making land off limits for public use. Fuck them. It is our land and we have a right to use it and profit from that use.

How about a new homestead bill which allows veterans to buy federal land tax free? As far as taxes go, why do veterans have to pay any property taxes on their primary residence at all? They should be exempt for life.

SonsOfLibertyReborn's picture

Yes! The federal land can be sold to homesteaders so that the nasty cities can depopulate. In the atomic age, cities are a national security liability because WMDs are much more effective against crowded areas. Robots are going to put millions of more people out of work. Well, small scale organic farming provides a decent income (if you work HARD) and allows oneself to be very independent. We have the land, we just don't have a leader with the vision and courage to do it.

JailBanksters's picture

It can only get bigger, like Trumps Ego

 

Last of the Middle Class's picture

Shit, college graduate salaries would have to triple in order to make the pay off of the debt worth while.

angry_dad's picture

who is going to pay $25/hour to burger flippers?

SmittyinLA's picture

Foreign students got VISAS, class credits and scholarships for working on the Hillary campaign, she funded her own foreign campaign army with US taxpayer guaranteed loans and US visas.

She sold American debt to finance her campaign.
http://college.usatoday.com/2016/04/28/wake-forest-students-clock-hours-...

Worse they can't pay back their student loans without a government job so we'll have to hire them or eat the losses or both.

angry_dad's picture
angry_dad (not verified) Feb 7, 2017 8:06 PM

Thanks to the dumbing of America;

 the dull witted gringos are happy to pay 40% too much for their cars, 1,000% to much for their health care,  and 60% too much for the diploma mill colleges.

Any wonder why they are over $20 TRILLION into debt with no end in sight?