Posted on 08/14/2013 2:58:00 PM PDT by RKBA Democrat
Something funny happened on the road to the epic consumer balance sheet cleansing and subsequent releveraging (without which there can be no actual non-Fed sugar high fueled recovery): the second quarter. And specifically, as the Fed just disclosed in its quarterly Household Debt and Credit Report, the number of consumer bankruptcies during the second quarter, just jumped by 71K, to 380K from 309K in Q1, the biggest quarterly jump in precisely three years - on both an absolute and relative basis - and the most since the 158K jump recorded in Q2 2010. It appears that when the "releveraging" US consumer isn't busy buying stuff on credit, they are just as busy filing for bankruptcy. Healthy consumer-led recovery and all that.
(graph embedded in article)
But wait, there's more.
Because as this other data set also from the NY Fed shows, the proportion of US Consumer that have a third-party collection process commenced against them is pretty much at all time highs, where it has been for the past two quarters. Must be the recovery too.
(graph embedded in article)
How’s those cheap imports working for you now.
damn those ATMs
Hey Danny tell us All again about how the USA is a "Net Exporter of Crude Oil" hahahahahah.
I damn near lost it all last year; not because I was squandering (I have been in debt reduction mode), the cost of living is simply shooting up. Thank God my lender worked with me on my mortgage to keep me on the right side of payments. These days its bare minimum as I try to free myself of all debt (minus my mortgage) in preparation for the inevitable collapse.
WTH?
http://www.businessweek.com/ap/2013-08-14/us-household-debt-drops-to-multiyear-low
Which is which?
Its not the “imports” Danny, its the government getting in the way of everything. Even if we COULD buy all American (we can’t, business has no choice but to flee the homeland), how low do you think those prices would go with unions still thriving in this country?
Debt will not matter if there is a complete collapse.
But I just heard yesterday that there were the fewest credit card delinquencies in over 20 years.
No it's the imports. You can eliminate every government regulation and every government tax, and you still can't compete with Chinese labor that is at 1% the cost of our own.
The reason businesses have no choice to flee the country is not to avoid U.S. government red tape. It's because if your competition starts making use of super cheap foreign labor, you'll soon be out of business.
To be sure, you'll be out of business in a few years anyway when China copies your product. But in the meantime, you'll gain market share, have high profits and can pay yourself high bonuses.
The only choice they have is to flee first and enjoy the bonuses, or go out of business.
No it's the imports. You can eliminate every government regulation and every government tax, and you still can't compete with Chinese labor that is at 1% the cost of our own.
The reason businesses have no choice to flee the country is not to avoid U.S. government red tape. It's because if your competition starts making use of super cheap foreign labor, you'll soon be out of business.
To be sure, you'll be out of business in a few years anyway when China copies your product. But in the meantime, you'll gain market share, have high profits and can pay yourself high bonuses.
The only choice they have is to flee first and enjoy the bonuses, or go out of business.
Great...... I love quality inexpensive non union made products.
Good for you! If you also enjoy supporting 100 million Americans on food stamps, then this must be the best of all possible worlds for you!
Lazy people won’t work
We got out of debt except for the mortgage and a $243 a month car payment. Another car is paid for. We still need at least $3,400 a month to survive. Medical bills or insurance premiums, two dogs, home and lawn care...It all adds up. Plus prices on everything has gone through the roof. That includes utilities.
Now, I’m not saying we’re starving. We eat good. But as prices go up our income stays the same. We never go anywhere so the price increase in gasoline has no effect on us. We seldom eat out. We’re cancelling Tmobile and going to Consumer Cellular to save $30 a month. We cut back to basic cable and that’s probably going away completely in January when it jumps to $89 a month. I don’t know where else I could cut.
Bankruptcies would wipe out the outstanding debt reducing the delinquencies.
The question is what has happened to total consumer debt.
The heading on the follwing chart was:
Falling indebtedness is largely due to defaults rather than repayment
When there are no jobs, even hard working people sit on their backsides filling out resumes.
Do you really believe 25% of America is suddenly lazy? 
Defaults, bankruptcies, and voila, less debt.
There are county zoning laws against manufacturing, even tiny manufacturing by individual men in tiny shops, in the middle of nowhere with nearly no population. Over-regulation has much to do with it. One interesting thing about it, is the strangers who’ve shown in county commissioners’ meetings around the country over the years to stop small production businesses from starting under environmentalist pretenses—some of them even known associates/relatives of managers of much larger global businesses.
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