As usual the MSM puts up a headline that makes you think all is well in consumer land. Wrong again. You peasants continue to ignore the lords of the manor (Bernanke & Obama) in Washington DC and refuse to whip out that credit card and buy stuff you don’t need with money you don’t have. The latest data on consumer credit paints a clear picture of government gone wild and a populace that has run out of money or run out of gas:
Here are my observations:
- Credit card debt fell again. The credit that is completely under the control of citizens continues to decline, month after month. If real income continues to decline and credit card debt continues to decline, how are retailers and restaurants going to increase sales? They’re not.
- Credit card debt reached $1.005 trillion in 2008. Today it stands at $849 billion, 16% lower after five years. Most of that was written off by Wall Street and passed onto you.
- The population of the US was 304 million in 2008. Today the population is 317 million. Credit card debt per person in 2008 was $3,300. Credit car debt per person today is $2,700. This is very disappointing to your owners. Wall Street loves earning 13% interest on your credit card balances when Bennie is loaning them money at 0%. Obama is very disappointed because consumer spending makes up 71% of GDP and you not buying Chinese made crap really puts a crimp in the economy.
- In more shocking news, the credit that is under the complete control of the Federal Government (student loans, and subprime auto loans through Federally owned Ally Financial aka GMAC) grew by another 8% as Obama has no concern about getting paid back, since it is your money. Student loan debt has now reached $1.2 trillion.
- Non-revolving debt has grown from $1.646 trillion in 2008 to $2.188 trillion today, a 33% increase in a time of supposed deleveraging. That’s funny, because total consumer debt is at an ALL-TIME high of $3.04 trillion.
- The number of students in college was 18.6 million in 2008. It grew to 20.4 in 2011. But, the number fell by 500,000 in 2012 to 19.9 million. Student loan debt totaled $731 billion in 2008. Today it totals approximately $1.2 trillion. If enrollments are up only 7% since 2008, why is student loan debt up by 64%? Inquiring minds want to know. The Obamanistas wouldn’t be doling out loans like candy to the most subprime borrowers on earth – college students with no job prospects - in order to artificially stimulate the economy and artificially reduce the unemployment rate. Would they?
- The student loan debt outstanding per enrolled college student in 2008 was $39,000. Today that number has grown to $60,000. Does this make any sense? Are you ready for a $500 billion student loan bailout? Because that is what is coming your way.
It’s amazing what you can gather from a simple one page report on consumer debt. The data confirms a continuation of our downward economic spiral and a bleak future for the college kids who have been lured into debt they can never repay. And it was all done by Bernanke and Obama as part of their master plan to revive our debt saturated economy. If you had only cooperated and bought something you didn’t need with your platinum Visa last month, all would be well.