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Unadjusted Consumer Credit Soars By Most Since Peak Of Credit Bubble In August 2007, Third Highest Ever
As some may remember those long ago days of January, when the market was not still lost in the latest bout of QE-hopium induced euphoria, December sales missed expectations, following even more disappointing November sales, despite propaganda channel promises that the 2011 shopping season was the "strongest ever"... and yet, many were wondering where did the already cash-strapped US consumer procure the cash to shop as much as they did, even if it was well below a record level. Now we know: it was on credit. As the chart below shows, Non Seasonally Adjusted Credit in December 2011 exploded by $33 billion sequentially In December compared to November: the third highest in the past 18 years, and only second to August 2007, which just so happens was both the peak of the market, and the peak of the credit bubble. The SA chart shows pretty much the same: a surge in consumer credit in December, even if the bulk of it was non-revolving, or used for such purchases as offloading some of that GM channel stuffing, and paying for one's college education. What does this mean? Well, with at least 2 more years of ZIRP, the credit bubble is already back, and it is only uphill from here. US consumers will get increasingly more and more in debt as they use more debt to pay of credit card interest, leading to ever further cash injections to keep asset prices higher to give US consumers the illusion that they are wealthy, so they spend even more, and so on. Just as Bernanke is talking about QE, the US consumer is actually saying it is time to tightening. Needless to say, good luck with that. Congratulations Ben - by exterminating US savers, you have managed to reflate the consumer credit bubble as for the 4th month in a row, nobody is deleveraging, even as the US government continues to add about $140 billion in debt each month. The most epic credit bubble collapse ever is coming fast, and this one will be at ZIRP, which means that even the smallest rise in interest rates will finally and mercifully end it all. Yet an even more epic surge in prices may precede it as banks slowly but surely are forced to push excess reserves into circulation. All $1.6 trillion of them... compared to the $1 trillion of currency in circulation.
NSA sequential change in consumer credit:
SA sequential change in consumer credit by revolving and non-revolving.
And of course, government's share of consumer credit courtesy of John Lohman.
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Outstanding.
This article presents the big ? regarding inflation v deflation (whichever order, with the possibilty of stagflation and biflation in the mix).
Consumer and businesses are borrowing to pay interest on existing loans and for necessities of life (energy, food, medical bills, etc.), or are they borrowing based on faith in economic recovery, and spending said borrowed funds on more elastic, discretionary goods/services?
Robert Oak & Bruce Krastring need to drill down on the details of this massive boom in borrowing (biggest in a decade - 2 months running) to determine the whys of the borrowing, the whats of the spending and the whos of the recipients.
Some people tell me I'm a pessimist, but I could swear I'm a realist (those very rosy NFP numbers on Friday aside - /sarc), and I say people are borrowing out of necessity, and not any sort of confidence, whatsoever (excluding anyone who is too-big-to-fail and too-incompetent-to-suceed, because they get a guaranteed ZIRP cost teet and all their existing debt-future losses backstopped by The U.S. Taxpayer, courtesy of Geithner & The Bernank).
OT: CAPTION CONTEST PLEASE!!!
http://news.yahoo.com/photos/us-president-barack-obama-reacts-14-old-joey-photo-200940588.html
laughing too hard to think of one!
WOW! You just cleared the debt ceiling!
"Wow.... just like the alley rockets we used to shoot in my Chitown hood."
You and I can go looking for that marshmallow later...alone.
I'll screw American kids 6 ways to Sunday given the right circumstances.
Ohhhh, you just hit Michelle's butt or was that Nancy's face?
I predict a 7 year cycle; About as long as it takes to get a discharge between bankruptcies. Load up, Dump, Rinse & Repeat.
"Oh Jimmy, this sure does bring back the memories of the AA equipped 4x4 Toyotas I used to tool around in back in Kenya"
"THIS will distract people's attention, Mr. President! Mr. President?"
Winning caption- 'GEE did I do THAT'??
The only line I could think of is "It's full of stars!", but than again I am quite drunk by now. Cheers.
"You're right! Your Hopium Ray Gun is vastly superior to the teleprompter delivery method!
"Damn! Now if I just had that bust of Winston Churchill to use for target practice..."
"Wow, Jimmy, tearing some of the plumbing out of the house your family was just kicked out of and turning it in a Sooper Dooper Pooper Shooter was a great idea! And look! It's heading straight for my ceiling f..."Playing with a home made gun? Does this make you an extremist?
No, but buying gold does.
"Wow, haven't seen a shot like that since I last saw Larry Sinclair"
SAVES ME JEEBUS
things that were at higher rates are getting progressively rolled over at lower rates, down to 0%.
What this means is that once the credit base has been adjusted down to 0, crushing yields, that there WILL NOT be anymore demand for refinancing, to go along with the complete lack of demand for new credit. THAT will be a day to behold.
....you mean like Japan....the sequel?
people are borrowing out of necessity, and because credit cards and auto loans are being handed out just as easily as before the collapse began.
If the estimate was 7 and we came in at 16, someone is shitting about now. I guess that would be V and MA
errare humanum est, perseverare autem diabolicum
I don't need no stinkin' badges, and I don't need Bruce Krasting to clarify this. I see it every time I go to the grocery store, every time I go to a dept store, fast food line, gas station, etc: everyone...buying...everything...with their plastic debt cards.
I can give you one personal answer. Discover has a card with zero balance transfer fees and zero percent APR for 12 months. I am going to spend on it, within my means, then transfer the balance to another card with zero percent APR for another x number of months. If banks get 0% loans, I intend to try to as well. Hell, even 2 or 3% fees make it worth it with gold (and the money supply) rising 10% a year. I will keep rolling it over until it is absolutely necessary to pay it off.
also they are 'masking'
its (i believe) it a middle class thing. people do not want to appear to be struggling so they use savings and also borrow.
my mother does it and i have discovered 3 / 4 others who have admitted it. this is not scientific evidence but this sort of stuff is always difficult to fathom when money is involved,
people lie.
as i have posted before, this whole game ends when these middle class people give in.
they are not there yet - in the uk or europe.
but they are getting poorer by the day. could this be factor in mutual fund withdrawals?
government borrowing, not private consumers.
0% is a good rate if you can get it. I am holding out for -5%
Hahaha!
line forms to the rear, trav! L0L!!!
i'm gonna take $1 mil @ -3% and if the rate keeps dropping, i'm gonna re-fi!
i see where you actually tried to respond to TIS's original comment about...(wait for it)...credit
everytime this comes up, tyler is drinking too heavily to do anything but laugh at the confusion, but wtf, eggs-actly, is "G-owned Consumer Credit" where G = goobermint?
here is a aug,2010 piece by Daniel Indiviglio and i find the date interesting b/c it coincides with c/c going positive in the first chart. and c/c has expended since then, except for the one "sovereign downgrade" (!) time
The Federal Government's Big Influence on Consumer Credit -The Atlantic
he looks at this data from the 2008 "crisis" to his date of publication, concluding (paste, my emph):
This data shows a few things. First, the government has been very aggressive in its efforts to ramp up its consumer credit holdings since the recession. Second, without that support, credit would have shrunk far more.
In fact, since the government's holdings are isolated to non-revolving debt, it makes sense that total revolving debt has declined so much more than non-revolving over this time period. The government is the holder of obligations like mortgages student loans, but not credit cards. Since the financial crisis began in 2008, total revolving credit has declined by 15.3%, while total non-revolving debt has fallen by just 0.7%. Without the government's influence, however, non-revolving debt would have fallen by 8.5%. That's not as much as revolving, but it's still a much more substantial drop.
(me again) so yes, the consumer is borrowing; and maybe finding some work; BUT if we take these ideas to the top chart, we see non-revolving credit leading the expansion. again, as tyler notes...
...i'm still digesting the rest of his "prognostication" and analysis... hmmm...
Looking at the October number being a wee bit higher might just be consumers buying heating oil on the credit card and maybe a little Halloween candy.
I heard last night on NPR MARKETPLACE, the radio version of bubblevision, celibrating the consumer increase in spending and the use of credit cards. WHAT A BUNCH OF Just pathetic valley girls and boys playing the idoits game of touchdown and overlooking the players have broken legs.
If you have any bernanke bucks in the piggy, you already have those rates.......might as well borrow against it.
Feed the pig, the pig must live.
"Conjunction Junction what's your function?!!!!"
"Linkin' up clauses and phrases and Congressmen I like!"
Man... the lost innocence of a mere 40 years ....
The Kingdom of Could Be You [not anymore, Sunshine]
http://www.youtube.com/watch?v=kI6oBWYuN1Q
I guess those idiots never learn. Blame in part a non-functioning eductional system which fails to convey the implications of compound interest at 30% APR.
All in cash here (diversified in various currencies) and we didn't buy jack for X-Mas.
Which "idiots"? The ones who are living off credit cards because they can't find a job, or at least one that isn't a slower way to abject poverty? Self-righteous ass.
"All in cash here (diversified in various currencies)"? Which fake fiat is best? I guess you're betting on no capital controls or bank holidays squeezing your "various currencies"? Pretentious dipshit.
As the bowl churns, the giant cosmic flush waits
Deleveraging is foolish when you are paying the debt back with devalued dollars.
No kidding. I've always held the belief that the stories told about the "average borrower is delevering" to be a complete lie.
And to Truths point above, I actually do know a handful of individuals that ARE borrowing just to get by, lifestyle choice aside. This is ugly.
Well, I just "de-levered" via a short sale.....poof $860k of debt just went away....short sales and foreclosures are deleveraging events....
The curious thing I found when doing my research is that non-performing loans, and deliquent loans are actually going down. So more people are putting it on credit but are able to pay it off? I know, I know sub-prime car loans, and student loans are up but I assumed that's primarily why governments share of credit was going up
http://research.stlouisfed.org/fred2/series/DALLCACBEP?cid=32440
http://research.stlouisfed.org/fred2/series/DRCCLACBS?cid=32440
Unless of course the banks have relaxed lending and consumers are making their credit card payments with other credit cards.
NPL as a percent of total base should be going down for two factors, one, the gov is borrowing and distributing that money. 2, debts have defaulted and been written off and it is now harder to get credit willy-nilly
According to this article it is NOT harder to get credit. As Tyler mentioned in the article:
I get the impression that wherever government is intervening heavily, such as auto and home finance, credit is becoming easier to access and at lower rates (even for those that private sector financing would deem untouchable).
Elsewhere, I think there's still a credit drought, generally speaking, given the balance sheets of many banks and the complete lack of clarity going forward.
not on non-revolving debt, they didn't
bingo....consumers are crafty and are using easy credit to pay off old debt. This is of course completely insane, but the banks/govt will justify by saying making more bad loans will increase confidence and result in a virtuous growth cycle etc etc.
I keep looking for a good analysis that breaks down credit growth by subprime. My guess is that the banks are pushing subprime lending with tacit approval from the fed and govt....because if you lend a cash-strapped person a $1000 then they will immediately spend $1000. Wow - look at that economy surge!!
Huh? It's completely sane to pay off debt at 5% with debt at 4%.
Nothing is sane when you're buying a 72" 3D LCD-LED TV on credit.
It it completely sane to be in debt.
I think what Trav meant was that REFINANCING of existing debt is being called deleveraging and new credit all at the same time. Ppl are rolling over loans at lower rates. If you have a big loan and no option but to roll at a lower rate, you'll roll.
BINGO.
The other day a customer at my wife's credit union needed to get a personal loan (the second or third) to pay for his monthly car payment.
Rack those charges up and then walk folks. Negotiate 30% settlements, then rinse, repeat.
Walk away. When you receive the dunning letter, have them prove the debt. Ask for the signed contract between the parties. Chances are they don't have it. If they bring you to court, denie it is your signature(if they have it). Don't verify it and judgement in your favor. If they don't sue,After 180 days by law they have to charge it off. They sell it to collectors. Once again, verify and deny. Wash, rinse, repeat! FUCK EM!
The Judge 9/10 will favor the collection agency over technialities.
The collection agency is an interloper. Technicalities? Please. No original signed contract-No case! You must work for a bank.
YES! Act like a deadbeat with a ghetto mentality and watch society PROSPER!
GOTS TA GITS MINE, so GIBS ME DAT
it's not a bad idea if you're buying gold.
So you going to win with your higher morals now Trav?
It's my goddamn money in the first place. My Social Security, my 401k, the first of which I'll never recoup and the second that I'm having to skip house payments for two months on, getting the fucking "we'll spank you" letter and then submitting the hardship form to the 401 asswipes to get my money out. I'd cash the whole fucking thing and take the penalty if I could, but it's not an option. So I'll do it the paper intesive way, one swing of the axe at a time.
Now, I'm buying rice, beans, 7.62x39 and other fancy stuff with this "money" that I'm extracting. What are you doing, besides reading this site and SPBDL?
Max out those cards, Gold Silver Remington Generator fuel & food stores.
I've done it but with cash not credit.
Stupid me.
Don't these Fuktards at the Fed realize the bigger this bubble gets the bigger the pain when it finally blows up.
I honestly believe that inflicting maximum pain is the Fed goal. I'm really not kidding either.
Oh I think theyre COUNTING on just that! The biggest blow-up ever in world history coming to a market soon near you!
Remember, world bankers are definitely NOT stupid people, only a fool would think dummies rose to the tip-top of the world banks...so everything they do is planned that way. They have been plotting the biggest wipeout and unrecoverable collapse ever...theyve designed it so there is NO way out and most everyone will be left pennyless.
Why is it so hard for people to understand that debt is slavery?
Most people LIKE being slaves!
Maybe they just don't know that there is an alternative.
Most slaves don't realize they aren't free until after they escape.
slaves are happy buying non-essential trinkets at the company store with wage advance (aka. credit card).
Masters gave them a special entertainment past Sunday as slave took a day off to watch other slaves kill each other for a ball.
Slave owners are using the profits to expand their plantation in Asia to supplement slave supplies.
Yup. Been debt free for three years now and I can't imagine going back. I don't even know what my credit score is anymore - nor do I care. I own my house and cars, and I pay cash. I will never deal with the bankers again if I can help it.
Same here. It's a damn good feeling. I don't owe a dime to anyone. Makes for some very peaceful sleep.
Agreed. My only fear now is getting cancer or some other condition where you can run up a million dollars in debt in a few months.
Mrs HD, had cancer five years ago (with good insurance) and it still damn near broke us.
100% with you. Paid cash for my land 40 years ago when it was cheap, built my own house (and outbuildings) over time, no mortgages (and a very patient wife), and the Mrs diagnosed with cancer 11 years ago - glad I made a reasonable bundle in the pre-rigged markets during the late, great computer/internet boom, cause even with good insurance it was an expensive haul. Now there is Medicare (as long as it lasts) and supplemental (affordable for us) insurance. But not everyone is so lucky.
Some of these ZH comments have me concluding that some of you folks do not know any working poor - those who not only are not on welfare, but abore the idea, and work two part-time crappy jobs and live in rental quarters and 'get by' - just. They are not nearly as stupid about credit card debt as some of you look-down-your-noses self righteous assholes think - but you know - sometimes they get sick, or hurt, or the car they need to get to work breaks down, (rural area, no public transport) or any manner of shit, and they have to use the plastic - or borrow from friends - life can be really tough on the edges. Right now, every damn store in our 'twin city' small towns (unincorporated communities) has a big 'appeal' jar on the counter(s) for some neighbor or another that needs funds for a hospital stay, operation, or some life-saving medical procedure they don't have the insurance for. There are just a FUCK of a lot of good folks who are struggling like hell to get themselves and their families by day-to-day, and ZH seems to be full of the Noblesse oblige assholes and their attitude that there are just a bunch of welfare bums out there eating your hard-earned tax dollars. There are some of those sure, but there are, at least around here, a lot more just-scraping-by folks that work hard, grind along, and are one incident away from the deep shit welfare land they hate.
I also know a few folks on welfare, and guess what? It is no fun at all - any more than the unemployment insurance bureacracy which treats the 'clients' like crap. And you are falling for TPTB bs of divide and they will ignore us - you, the self-righteous more or less middle class - are one black-swan incident away from the same plight.
Sigh. OK. Rant off.
NFP
Can't disagree. Anyone who hasn't had that empty, acid stomach and hollow feeling in their chest because they honestly didn't know what was going to happen to them because they couldn't come up with a few hundred dollars to scrape by another month - had best just keep their mouth shut and feel blessed. My youth was not ideal - I often went without and I never want to go back to that fear and sacrifice. I have a good life now - I worked for it - but I was blessed with a good woman and a decent head on my shoulders. Almost everyone I know is "working class" and most do not have health insurance - or have very high deductibles. Almost all live one or two paychecks away from the brink. Credit cards are used for food at Walmart, doctor visits, school clothes and gas for the most part. The debt collectors - I'm sorry, are the lowest form of life. A woman that worked for me years ago was hunted - I mean hunted by these people. Process servers showed up at all hours banging on her door, threatening calls and letters - the works. All medical debt. One morning I found her crying in her car hysterically. Her husband had a TIA because of a tooth infection. They couldn't afford the dental work he needed done. I paid for her bankruptcy.
Everyone who works deserves a roof over their head, food on the table and should be able to get to a doctor at a reasonable cost. Not everyone needs a McMansion, or two cars or a HDTV in every room - but a hot meal, heat in the winter and basic medical care is not unreasonable in a first world country.
Any of us could fall - it would be nice to know someone is there to help you back up.
Agree 100%. ZH is also full of misanthropic lunatic silverbugz HOPING for a paper collapse wiping out all bonds, pensions, stocks, everything except their metals so they can lord it over starving hordes.
There should be few opposed to the idea of a safety net. But a safety net only works when all of the people are part of the same social contract. We have probably 40 or 50% of our population that is totally GIBS ME DAT. This system of socialism can't work if a third or more of your people are cheating it.
There are certainly poor who are really trying to work, but there is a larger population of those who are flat-out welfare bums. If you add up the CHEDDUH that goes into the city "poor," it'd blow your mind.
Safety nets are like vaccines....society can get by without them until it can't.
Memories of the past are short and parents are irresponsible in failing to pass on the history that could protect the next generations from their own hubris.
Well put.
I had an elucidating but horrifying conversation on this topic recently.
Apparently for typical, as you may call them, "sheeple", it all comes down to finding the path of least resistance in life, which as we all know is the path laid out by the reigning status quo in accordance with the desires and purposes of those in power in any given society. For such people, there is essentially no decision - it is just assumed that the path of least resistance is the one that should be taken, period.
They are aware of alternatives, they know on some level that things could be different. But their overarching concern in life is not-resisting, that is, accepting, acceding, assenting in every non-trivial way. They implicitly believe beyond all doubt that this Pleasure Principle pragmatism - living one's life so as to experience the greatest possible degree of pleasure and the least possible degree of pain - is the definition of "the good life".
The person who shared these views with me was fully aware that such a mentality is utterly and totally fatalist and selfish, a perspective the core of which is narcissism.
And, make no mistake, they do indeed love it. George Orwell and Aldous Huxley were not wildly imaginative sci-fi fiction writers, they were keen sociopolitical observers who extrapolated the trends they saw at work around them.
Reading Brave New World again as we speak. Wild.
I post this comic strip a lot, but if you haven't seen it before, check it out:
http://www.recombinantrecords.net/docs/2009-05-Amusing-Ourselves-to-Deat...
UR just dumb, dude.
The people who borrowed like shit and bought a buncha stuff are HARDLY living like slaves. YOU are the slave because you work and pay taxes to fund their EBT cards, free housing, and all the rest.
We have an entire race of people in this nation who are 95% supported by everyone else. And you WILLINGLY do it.
Listen you presumptuous dickhead. You don't know me. You don't know what I pay, to whom I pay it, how I pay it or even if I pay it. In short, you don't know a motherfucking thing about me. So why don't you just shut the fuck up and go back to sucking cocks in an alley for two bucks a pop you fucking asshole.
(and I mean that will all DUE respect)
All right you two - that's enough. You be nice. So help me - I'll turn this comment section right around and then there won't be any more smart ass remarks for anyone.
I know, it's hard not to get angry with Trav...downright irritating that he is right about almost everything. Esp. the Congoids and their Jew masters.
There's an edge in you tone..I like that in a person, it's kinda uplifting.
ROTFL...
not my fault UR dumb, dude. You pay so probably 40% of the population can freeload.
Debt isn't slavery...paying for deadbeats IN debt is slavery. Besides, I was just yankin yer chain man, chill out lol
because debt is also, in the short term, stuff.
QE Three cometh!
I would encourage everyone to run those cards to the moon, walk away from you underwater house and call it a day. Fugm!
QE3 with the DOW and S&P within spitting distance of all time highs? How?
that's how I see it too. No need for QE3 as long as aggregate debt expands. Looks like the consumers have decided to jump back into the ponzi.
S&P 500 needs another 150 points before it breaks its record.
So then we need and justify QE3 for another 100 points on the SP to get it over all time insane record bubble high? Well hell, lets just throw a party and call it $5 trillion for stocks so we can really whoop it up proper.
Greece default will justify QE3 = Greece default bullish
Full retard.
110% Retard and rising.
Always love it when a plan comes together.
Who wants seconds???
Just Robo levering up to get in on the facebook IPO.
pods
When in the hell IS this goofy Facebook IPO anyway? Cant we get that over with and get on with the market top tick then plunge? Sick of all this day to day BS.
Friday, after 4:00pm EST.
Interesting that we refer to consumer debt as consumer credit, yet we always refer to government debt as debt. Interesting too, how one is generally considered a good thing, or a good sign, and the other is not. But at the end of the day, the banking oligarchy who collects the interest payments... do they see a difference? I'm guessing that they don't. And our credit/debt monetary system doesn't really care, I don't think... but I've never asked him/it.
From this day forward Government Debt will be called Government Credit. Problem solved
the part that you have not figured out yet.. is that The Powers That Be.. want you dead.. they want lots of us dead..
there are to, too many of us.. wasting precious resources.
We in America use 5 times more resources than that of the poor in the 3rd world.
http://www.youtube.com/watch?v=6WQtRI7A064 Bill Gates Admits Vaccines Are Used for Human Depopulation
I could source and sight others... but until you figure out peak affordable oil and debt.. this will not make any sense..
people give people the answer(s) here every day. but until a person is able to understand the mechanics of the answer. it is useless.
I wonder where the Great chairsatan thinks he will be when the poop hits the fan and the great R-E-S-E-T button gets pushed. I wodner if he has some Eagle's Nest set aside for himself to hunker down whilst the hungry people scrounge for food.
You better believe that they all have a plan in place. And I'll bet you a silver dollar that the part of the plan that involves us is not good.
I had to charge a tent, sleeping bag and candles.
The bubble will collapse when every single bear is wiped out first.
Then, theyll wipe out every single bull.
It seems your efforts have not been wasted SD-One.
At least RoboDroll now admits a bubble exists.
Some bears are patient. Just watching and waiting. Spy 136.22 remember that number.
NEVER, EVER underestimate the most battle-hardened, patient, vicious:
http://api.ning.com/files/K-XUvcAylbf3bH9m6w-KQXs*ENbWgBcxSJFfpH7c0wVvTz...
When they strike, they can easily wipe out 30 years of a bull's aggregate gains, thus rendering him dead - it's even uglier for bulls on margin (see Nikkei or U.S. indexes, or any index anywhere).
Not even the Greenspan put or Bernank put can fend them off forever, bitchez.
You have no idea what you're talking about. The bears, who sell short, will walk away with cash or shiny new assets, and the bulls will be holding equity at the top. So, tell me again, who is going to be wiped out first??
Bears go to hybernation only, but bulls go to the slaughterhouse.
the great ES h&s that began forming in late 1995 / early 1996 is once again approaching the magic 1500 territory with no fundamental economic strength in sight...
Remember Robo, the bulls need someone to sell to....in the empty market, who will that be exactly? A bull is holding NOTHING, until a sell order is completed...theyre not 'rich' sitting there looking at numbers on a screen, it can all be gone in an instant and who is faster than an Eccles supercomputer?
There's your QE7
The bubble will collapse when every single bear is wiped out first.
Robo - here's how the bears are going to fare:
http://3.bp.blogspot.com/_Jo7lJoQhtjw/TTdOPoV7Z_I/AAAAAAAARc8/4gkqWFKpQoM/s400/hunting%2525252Bcartoon%2525252Bfar%2525252Bside%2525252Bby%2525252Bgary%2525252Blarson.jpg
http://www.snowbooks.com/weblog/FarSideCartoon.jpg
Unless of course the banks have relaxed lending and consumers are making their credit card payments with other credit cards.
This is more likely the case, as people before the end of 2011 try to roll over their cards to get a year's worth of under 5% interest.
Either that, or the populace has just decided to charge up their Visa/MC/AmEx....and just don't plan on paying it back. Which is also super duper.
I only used my CC once in 2011 (at a hotel where I couldn't use my debit). I'm finally, at age 30, close to paying off my debt. I'm going to be life black by the end of 2012. It going to be fucking sweet.
gee-must be the reason, V,MA,DFS are at new highs
The American public still hasn't learned a lesson yet! Most of the populous was brainwashed into spending with the easy credit that was handed out, now they can't stop. It's an addiction that even Betty Ford can't fix. The public needs the funding cut, it will hurt for awhile but it needs to be done. There will be a withdrawl period, then and only then can this country move forward!
Jan 2000, July 2007 and now....
nobody is deleveraging, even as the US government continues to add about $140 billion in debt each month.
I thought I glimpsed those same words on the Fed's mission statement...
Does the government buy flat screen TVs and Hawaii vacation on credit card? I thought they get 10 year loans for less than 2% interest rate.
Thanks to bartender Ben the drucks are off the wagon. Thank god we don't have to go to those stupid AA meetings anymore.
The mental image of a dam breaking comes to mind when I think of all that liquidity going into circulation all at once.
It's 4 0'clock on Wall street do you know where your money is?
Vaporized.
Rehypothecated.
And dont forget also, next they say rates have to rise, WAY sooner than the FED is projecting. Critical mass is getting way closer.
Bernanke did a pretty good job today of explaing that rates will never rise. Ever. never ever.
Why don't people with heavy debt loads just say fuck it and file BK?
The bias of PRIDE!
Peeps' incomes are not meeting the whole month's obligations, so they "supplement" with some borrowing' then a little more and even still more. The FED and banksters are doing an excellent job of painting a picture that prosperity just just a little over the horizon - you can come out whole if you meet your obligations.
Panic first and avoid the rush.
1.6 Tril.. don't forget the fractional reserve money multiplier magic power which only annointed money center banks are endowed with... Behold! they will turn 1.6 Tril into 20 Gazillion Million Grand! Rejoice slaves!
And on MSM it is all good. Employment up, sales up, consumer confidence up, ISM positive, unemployment down, the stock market is rocking and Europe is no problem as long as 17 nations join the same Glee Club.
Looks like the perfect set up for a big correction. How do the inmates get away with this.
Many must believe that the end is near what with Fukushima radiation, the posibility of nukes flying and of course the Mayan calendar. Me; I just keep stacking.
Well, if a nuke hits and you're positioned right when you're stacking, you might just be mummified in 24-karats. (and you'd fetch a lot at auction, I expect...)
Ben has everything under control. The proof:
1) virtually all US congress people congratulated Ben for his hard work.
2) the stock market is on its way to all time high
Don't worry we have seen the last of consumer binging. This run up was caused by the confluence of three factors; Christmas, the irresistable temptation to buy stuff because it was deeply discounted, and desperation. How many of you bought shit that you shouldn't have this holiday season just because it was on sale? I know I did.
caption contest ... can we hit iran with this thing????????????
Although I agree a lot of people may be in a jam and trying to fix it the wrong way (borrowing to pay interest on more debt or continuing to load up on debt without a way to pay it back),listening bennie?
With good credit history Some credit card companies offer 0 percent interest for a year.I own Gold & Silver, still working, Yes I borrowed at zero percent and bought silver.and I always payoff before interest charges happen.Then I get more and when times up,(interest begins coming due if card is used) I no longer use that approach.
Some people actually can control their spending and stay basically debt free.Not sure how many of course.My debt is only on my home and it is not upside down.Paying off that mortgage would take money off the investment table and that appears to return more until, I feel I have enough to pay it off and not owe anybody a damn thing and still have my investment money.
Cheers to all
Oh dear, oh dear, here we go again!
Global Debt Crisis
The greatest private fraud of human history.
Who are the great fraudsters who are becoming the murderers of the human kind? How does the economy "illness" threaten Democracy and the freedom of people?
http://eamb-ydrohoos.blogspot.com/2012/01/global-debt-crisis.html
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By knowing what happened in indebted Greece, where loan sharks created “bubbles” and the current inhuman debt, one can understand the inhuman plan in total ...understand where this plan started just to bring all states at the same end ...understand how this type of plans are established...
Authored by PANAGIOTIS TRAIANOU
"Sung to the tune You are my Sunshine."
You are my credit card, my credit card!
Swipe for anything to give to meeeee.....
UGH.
How high must the balance be before the weight crushes those who hold or carry the balance? I treat the monthly payment into student loan as a necessary and unpleasent patriotic duty until such time it is deemed so bad as to threaten the very future of our great nation.
This is all great news. We all know that the economy soars following an increase in consumer credit.
Consumer Credit Jumps in December But Consumer Spending Flat – The Crazy World Of A Post-Bubble Economy
http://confoundedinterest.wordpress.com/2012/02/07/consumer-credit-jumps-in-december-but-consumer-spending-flat-the-crazy-world-of-a-post-bubble-economy/
this number WILL go higher, much higher in the next few months.
Citibank has started handing out 0% balance transfers of up to 10K for a cost of $75.
rinse and repeat. this is what credit card companies did before 2008.
One of the most penetrating posts ever posted on ZH. The ship is going down, in a barely perceptible slow process accompanied by an establishment voice-over constantly enunciating a variation of this theme; "America you have never had it this good!" And what is the intent? To get you, the investor, on the wrong side of the trades the establishment has to make to offload their losses onto your balance sheet. Watch CNBC much? How about Bloomberg? Surely you read the Wsll Street Journal?!
EZ Credit is the sine quo non of a Bubble.
Housing is a perfect example.
Q: How does a 747 with no operating engines pull out of a nose dive?
A: Very abruptly...
These dolts think they are spending money.
Fools.
Money is different than credit,ask the FBI
IN INDIVIDUALS, INSANITY IS RARE; BUT IN GROUPS, PARTIES, NATIONS AND EPOCHS IT IS THE RULE
Friedrich Nietzsche
Consumer loans have picked up a few % in the last while-but still holding in negative territory-
http://bit.ly/zQQ11K
Who's the fool? Is it these consumers racking up new record levels of debt they cannot afford, or is it me for having zero debt at a time when the world's monetary authorities are working overtime to make debt meaningless by debasing the means by which it is measured?
Every morning when I'm shaving, I ask the guy in the mirror who the fool is, and he just stares at me. What does he know that I don't?
Perhaps Sir would like another round of subprime mortgages? ... they're wafer thin!
Loan sharks knew that if they took the dollars printing machines under their control they could suffocate the world ...they could initially suffocate USA and after taking the USA from the Americans, they could move and suffocate the whole world and take the countries from their people.
FED printed cheap money and loansharking multiplied this money in an unnatural way within the American economy boarders and they discarded them abroad so that they did not threaten USA. USA became the first state in the world with artificial “breathing”...
It cannot be possible but just in the USA for only the last year, more than one million houses were seized. It cannot be impossible but the New World has returned to tents and shelters ..has returned to the ages of Columbus. It cannot be possible that we allow to a few loan sharks looting the toils and the assets of people...
http://eamb-ydrohoos.blogspot.com/2012/01/global-debt-crisis.html
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Global Debt Crisis
Authored by PANAGIOTIS TRAIANOU