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Welcome, My Friends to the Collapse of 2011
The Market Ticker ^ | September 22, 2011 | Karl Denninger

Posted on 09/23/2011 6:04:20 PM PDT by Diana in Wisconsin

Remember the mantra that "consumers have delevered" which has been run over the last two years as an incessant bark from the media, attempting to goad you, the consumer, into more spending and more consumption to "lift the economy."

This claim has been a lie and a fraud upon the public and the new Fed Z1 makes this clear. The peak household credit liability was $13.92 trillion. It currently stands at $13.30 trillion, a reduction of a mere 4.6%.

This all came from home mortgages going ka-boom; $10.6 trillion to $9.9 trillion, a reduction of $700 billion. Total net reduction in liability was $620 billion; ex-mortgages consumer leverage has actually increased.

The DAX is now down nearly 10% in two days and the rest of the global markets are reacting in the same sort of fashion. This should not surprise; the same mantra of "we've de-levered" and "cash is at all time highs on the sidelines" has been claimed for years, and it's the worst sort of half-truth.

See, cash is indeed at high levels. But debt has gone higher, and yet nobody mentions the liability side. As an example non-financial business credit stands at $11.02 trillion, just barely down from the 2008 high of $11.15 trillion - and nearly a clean double from the year 2000 level of $6.21 trillion.

There's been no material "de-levering" at all. In fact the World Economic Forum claimed that in order to hit the "expected" GDP growth numbers we would have to double outstanding credit - that is, add $100 trillion in the next ten years.

(Excerpt) Read more at market-ticker.org ...


TOPICS: Business/Economy; Conspiracy; Society; Weird Stuff
KEYWORDS: collapse; denninger; economiccollapse; preparedness; ticker
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To: mowowie

I hear the Chinese are buying Real Estate.

Good Luck!


21 posted on 09/23/2011 7:06:17 PM PDT by Principle Over Politics (A closed mouth eats no cheese.)
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To: RegulatorCountry
Today my mom sent me a picture of the old house we lived in after I was born. Contra Costa county, CA. They bought it in 1966 for $32,000. It was unchanged over the years, no additions, nada. She told me it sold in 2006 for $1,100,000. Wonder what it's worth now?

I just can't wrap my head around a nondescript "starter" home built in the mid-60s going for over a million freaking dollars. What the heck was wrong with people?

22 posted on 09/23/2011 7:10:58 PM PDT by ponygirl (People are calling our President the Fresh Prince of Bill Ayers; thatÂ’s not allowed is it?)
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To: ponygirl

Today my mom sent me a picture of the old house we lived in after I was born. Contra Costa county, CA. They bought it in 1966 for $32,000. It was unchanged over the years, no additions, nada. She told me it sold in 2006 for $1,100,000. Wonder what it’s worth now?
I just can’t wrap my head around a nondescript “starter” home built in the mid-60s going for over a million freaking dollars. What the heck was wrong with people?


I’m just shaking my head.


23 posted on 09/23/2011 7:14:33 PM PDT by unkus (Silence Is Consent)
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To: Diana in Wisconsin

I don’t doubt these figures, but everyone I know is selling things and pinching pennies to pay off debt.


24 posted on 09/23/2011 7:24:21 PM PDT by freedomfiter2 (Brutal acts of commission and yawning acts of omission both strengthen the hand of the devil.)
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To: RegulatorCountry
Thanks man.

Every little bit of support helps.
The worst part is the embarrassment of friends and family that have no clue.

25 posted on 09/23/2011 8:29:32 PM PDT by mowowie
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To: RegulatorCountry

Sorry to hear about your dream house on the lake.
That REALLY had to hurt.
ouch
Thanks to many of our leaders in charge, all of our dreams are now turning into nightmares.

And NIGHTMARE is a good description.
every morning recently I wake up a nervous wreck.
I wish this was just a dream..


26 posted on 09/23/2011 8:38:17 PM PDT by mowowie
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To: Diana in Wisconsin

and what conservative didn’t see this coming during November 2008? I was on my couch like most of us were the night Obama won,and we all said the same thing,,,That’s it, we’re going down, end of the American Dream.


27 posted on 09/23/2011 8:51:30 PM PDT by The_Obama_Gerbil
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To: mowowie

It did hurt, that place was ten years in the plannimg, everything I wanted. Builder tried to buy it, turned him down, this was 2006, height of the boom. Left a lot of money on the table because of that, in hindsight. But, I didn’t build it to flip, figured the rest of my life would be lived there.

So, I’m back in the first house I ever bought, sold a lot of things, cut my overhead to just a mortgage, shut down my business and went to work for a former customer. Money’s not great, less tha thalf of what I was doing on my own, but everything’s holding together.

It all seems so long ago but was just 2008, and I suspect we’ve all got years more to go until things get any better.


28 posted on 09/23/2011 8:53:09 PM PDT by RegulatorCountry
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To: Diana in Wisconsin; All

29 posted on 09/23/2011 9:59:13 PM PDT by Bean Counter (Obama got mostly Ds and Fs all through college and law school. Keep repeating it.....)
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To: Diana in Wisconsin

When the hell are we gonna STOP paying taxes to this gubmint that shoots it down the sh*thole as soon as they get it?

Seen the “Swipe My EBT” video out there?
Taxpayers are losing their homes while the looters are buying Twinkies and potato chips off our hard work!

Starve the gubmint of tax payments!


30 posted on 09/23/2011 10:19:59 PM PDT by Mortrey (Impeach President Soros)
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To: Diana in Wisconsin

Politics:

Poly: “many”
Tics: Bloodsuckers.


31 posted on 09/23/2011 10:21:08 PM PDT by Mortrey (Impeach President Soros)
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To: Diana in Wisconsin
We’re In A Global Recession: Why This Crash Should Have Come Sooner
32 posted on 09/23/2011 10:38:43 PM PDT by blam
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To: ponygirl

“She told me it sold in 2006 for $1,100,000. Wonder what it’s worth now?”

Probably closer to the original $32k than the $1.1M.


33 posted on 09/23/2011 11:20:07 PM PDT by PLMerite (Shut the Beyotch Down! Burn, baby, burn!)
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To: RegulatorCountry

Reg thank you for your input.
your post will be the first thing the missus sees tomorrow.
She’s VERY sad, she picked out the design and had this house built on sweet free land for 110,000 bucks back in 1990.
Now we owe twice that??
Frigging wtf ugh!
Not my fault.
I feel like freaking out. Very depressed. really cannot believe this is happenening.
damn, it’s 5am?
ugh....
double ugh....

I need a job.


34 posted on 09/24/2011 2:11:46 AM PDT by mowowie
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To: Bean Counter

Perfect! You can bet your bottom dollar that many of those $16 muffins were tossed! I’ll bet these days the best Dumpster Diving in the COUNTRY is behind the White House, LOL!


35 posted on 09/24/2011 6:34:29 AM PDT by Diana in Wisconsin (I don't have 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set...)
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To: Brad from Tennessee

Thanks, Brad! Missed that last night. PLENTY-o-Blame to go around for the mess we’re in these days. Grrrr!


36 posted on 09/24/2011 12:11:34 PM PDT by Diana in Wisconsin (I don't have 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set...)
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To: ponygirl

Look up the address on http://zillow.com. That will give you a pretty good idea.


37 posted on 09/24/2011 9:16:49 PM PDT by AZLiberty (No tag today.)
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