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Consumer Credit Rises As Uncle Sam Funds More Subprime Car And Student Loans; Revolving Credit Drops
Superficially, it was all smiles following the announcement of the September consumer credit number which rose by $7.4 billion on a seasonally adjusted basis, on expectations of $5.2 billion (and down from the revised $9.7 billion borrowed in August). However a quick look under the surface reveals the same old trickery we have grown to know and love: revolving credit declined by $627 million, while the entire growth was in Non-revolving borrowing, which rose by $8 billion. What does non-revolving credit fund? Why auto loans (read subprime GM car loans) and student loans of course, the latter being the very same loans which even the president now is saying have to be reduced. As for the former, the G.19 now no longer even bother to report such data as Loan to Value, Interest Rates, Maturity and Amount Financed: analysts are left to imagine the best possible outcome. And just to confirm where consumer credit in 2011 has come from, of the $32 billion in credit issued YTD, $89.7 billion of it comes from the US government. The only other positive source of credit in 2011, for the whopping amount of $1 billion are savings institutions. Every other traditional source of credit is now... a drain.
Monthly consumer credit by revolving and non-revolving.
Sources of Credit monthly:
and total YTD:
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So, no liquidity problem then? I am confused. Just out of curiosity, was there ever a period in history when the largest part of that graph was actually savings? In particular, saving of those with currency backed by gold.
That's the miracle of the modern financial system. You can charge interest on debt funded by money created out of thin air (or random electrons). No need for any REAL money backed by meaningless metals or actually earned by the labor of actual people.
No real liquidity problem either- as long as money can be created without limits.
Probably, before central banks and central bankers.
Can I sell my diplomas and save some starving moron the trouble of getting edicated?
Or is it edijumacated.....
...sell the bastard a Chevy too, he deserves it.
probably gone in 60 seconds on craigslist.
" of the $32 billion in credit issued YTD, $89.7 billion of it comes from the US government"
Just luv math.
Pesos for peons!
Can the US Gov go deeper into debt?
YES WE CAN!
Can the US Gov owe more than any other country?
YES WE CAN!
Can the US Gov manipulate interest rates?
NO WE CAN'T (because that job is the privately owned central bankers who of course own the US Gov).. so YES WE CAN!?!?!
Gross is not net.
Almost like in the good old days: Buy a house and get a car for free.
Credit? You said It!
No Phone? No Loan!
We need more debt! I am manging the world's biggest debt based ponzi, er, monetary system.
I like these numbers: $32 billion in credit issued YTD, $89.7 billion of it comes from the US government.
Now that's credit growth the way Goldman ordered it!
And Obama will allow defaults on those student loans.....for votes...you just watch...executive order coming up...
Under the new student loan deal, they can pay back $1,000 per year for 20 years and the rest is forgiven -- no matter how big the original loan. So much for responsibility. So much for contract law.
Student loans... the next shoe to drop.
obama is going to give them a break on that one and make everyone else pay for it............
I doubt it. There's no way that plan will fly longterm. Education will be sacrificed before SS and other old fuck programs.
The whole 'stick taxpayers with student loan' thing was in the Obama-care legislation. http://en.wikipedia.org/wiki/Health_Care_and_Education_Reconciliation_Act_of_2010
OB must have figured out that Obama-care's DOA.
Google SERPs fun http://www.offgridminds.com/blog/2011/11/7/a-stock-market-or-equity-mark...
Great site. http://www.offgridminds.com/
if you have a job, we will get you a new car................its biz as usual in the sheepdom.........
Should I feel guilty as I watch my savings grow and my gold accumulate?
this is pretty funny, tho!
i was trying to understand wtf this means when i had this thought:
they do this to geese to make pate, right?
Nearly all "foie gras" is in reality "foie gras de canard" these days. Like over 90%, I think.
But yes - force fed goose/duck = same difference!
You can make the argument that Foie Gras d'Oie is ever so slightly better...
Pate is mealoaf. But they're eating us alive, that's for sure.
OK, so who are the players in student loans? Anybody we know?
I can name you a big one ... the US government. And SURPRISE!!! They failed miserably once again. Go figure. While there are other pawns in the game, the government is the driving force behind this madness.
Not exactly. It's the central banks.
http://www.abjpress.com/htwpage.html
McGrawl-Hill. parent company of S and P
Sallie May. AKA the devil.
Can I get a subprime loan on an Escalade? My family of four finally has one full time income (wife is teaching at a Catholic school). We have no other debt, and we only eat into our savings a little bit each month to pay for rent, food, health insurance, and other necessities.
I would like to do my part in supporting our economy.
Just cut back a little on the cell phone bill and the tats at the family tattoo parlor and it should be no problem to finance that new Caddy.
Could this type of data delay implementation of the Fed's exit plan?
Wait. Can't I get a sub-prime loan on a Chrysler, too? Did the gov stop subsidizing them?
http://confoundedinterest.wordpress.com/
Look at the charts. If we subtract student loans and subprime gov't loan, CONSUMER CREDIT GROWTH HAS BEEN NEGATIVE SINCE 2009!!!!!!
RESIST!
Don'tborrow, don't spend, don't own real estate, don't work, don't pay taxes.
And by the way, student loan debt should be dischargeable in bankruptcy. It is unconscionable to me that legislation was passed making student loan debt non-dischargeable. In fact, your social security benefits will be garnished in order to pay off your outstanding student loans. How about them apples? I wonder who got paid off by the big banks to push that legislation through.
...you wouldn't mean the body that makes the laws would you? Congress....?
All that's happening is predictable, as there are 7 stages that every major economy goes through. Those who know how it works profit & massive wealth is transferred to them. Several months ago I learned this information from a millionaire whose site I found & am sharing it with everyone I know.
His free video
"How To Create Incredible Wealth in Today's Economic Crisis"
is at:
http://theelevationgroup.net/presentation/register.php?a_aid=160667&a_bi...
Hope this info helps everyone as much as it has me.
Dr. Nancy
OCCUPY!
http://www.youtube.com/watch?v=-IRs4IvO0S8
UNIFY!
This is typical Americans - they just cannot live within their means and save. All they know how to do is spend.
When they were asked to pay their mortgages, they walked away and the same will happen with auto loans and student loans. They will just print more money to cover up the defaults and make the problem bigger and bigger until it all collapses.
Get on the winning team.
http://www.amazon.com/Simple-Wealth-Mr-Andrew-Costello/dp/1463523017/ref
Costello:
Read HOW THE WORLD REALLY WORKS. It IS a plot.
Bummer. About 3X as much credit issued as asked.
Student loan programs exist solely for the benefit of diploma and certificate mills. The "schools" get the money and graduate people who have little chance of finding a job. Hey, learn how to drive the big rigs! Learn medical transcription! Go to law school!
Under the pretext of learning a career, the owners of the schools get wealthy, and the banks collect on government loan guarantees, while unemployed graduates drown in a lifetime of unpayable debt.
Getting what looks like free money to go to school eliminates any need to do a personal cost/benefit analysis regarding the project. Another boondoggle guaranteed to result in a complete misallocation of precious capital.
Kickaha:
No, for the central banks and banksters.
The FED's most recent BANKRUPT AMERICA program.
Nice effort, very informative, this will help me to complete my task.
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