CONSUMERS STILL HAVE THEIR WALLETS SHUT

As usual, the MSM just flashes a headline that says consumer spending increased by 5.7% in May. Of course this is four months in a row of lower increases. That always happens during an economic recovery. Right?

The MSM bury the most important part of the report at the bottom of their regurgitated press release. Credit card debt barely inched up, by a pitiful 2.1%. Credit card debt started the year at $890 billion and five months later sits at $901 billion. That’s a 1.2% increase over five months. They tell us that the economy is fully recovered. There are 18 million more working age Americans than there were in 2008, but the amount of credit card debt outstanding is DOWN $120 BILLION!!! We are supposedly six years into a recovery with a 5.3% unemployment rate and credit card debt is down 12% from 2008.

Consumers spend more on credit when they are confident about the future and have good paying jobs. I thought consumer confidence was at seven year highs and jobs were plentiful. Obama told me so. If things are so fucking great for consumers, why is their wallet closed? Because the economic recovery storyline is a lie. Capital One commercials are on TV every 15 minutes asking the question: What’s in your wallet? The answer from John Q. Public is: NOTHING

The surge in consumer credit was again in student loans and subprime auto loans to deadbeats. The $1.4 trillion of student loans, up from $900 billion in 2010, continues to rise exponentially as the Federal government has no intention of getting repaid. You are on the hook. There are millions of low IQ Americans matriculating into the University of Phoenix, ITT and dozens of other scam schools with your money.

The government knows these schools are phony. The schools know they are phony. And most of the morons in the schools know they are phony. And you will get the bill when the defaults and bankruptcies avalanche down the mountain. But for now, the Feds give the appearance of growth.

The auto loan bubble is approaching the pin at 85 mph. The subprime slime is going bad at rates last seen in 2008/2009. The dealers lots are overflowing with inventory. The proliferation of 7 year 0% loans has reached a peak. Everyone who wanted a new car has one. The millions upon millions of leased cars are starting to hit the lots. Losses abound. The automakers profits are plummeting. The bad debt is going to destroy finance company and bank profits.

This shitshow is about to turn into a clusterfuck.