Deleveraging on good debt and ramping up on consumption debt – growth in auto loan debt, collection amounts, and revolving debt.
The grand US household deleveraging event continues as debt is paid off or more likely, wiped away via foreclosures and bankruptcies. What is hidden in the deleveraging trend is the growth of debt in certain spending categories. Keep in mind that not all debt is bad. For multiple decades the US had a cautious lending […]
Quantitative addiction and the allure of low interest rates – US paid $454 billion in interest payments alone in 2011. Equity in real estate for households cut in half.
Today I was looking at the total public debt outstanding and the current figure seems surreal. The total public debt outstanding is now up to $16.27 trillion. We’ve been on this path for many decades of spending more than we earn but the problem is we are reaching a peak debt situation. It is hard […]
Recession probabilities – For the 50 million Americans in poverty the probability of a recession is 100 percent. Growing economic divide for working class.
The probabilities of the US slipping into another official recession are growing. Don’t tell this to the 50 million people that are reportedly at the poverty level according to a new US Census report. This trend isn’t something new and it certainly is not going to be resolved overnight. We have nearly 47 million Americans […]
The rise of college students applying for food stamps – Mixing of college debt, part-time work, and food stamps. Working 40 hours a week at a minimum wage job does not cover basic costs for a college education.
The drawn out election campaign has now come to an end and very little substantive action is likely to be taken to assist the middle class. Even more disturbing is how little attention was given to the growing number of poor Americans. Almost 47,000,000 million Americans are now on food stamps, a record both in […]