Posted on 09/08/2009 3:20:08 PM PDT by Kartographer
Consumer credit dropped like a rock in July on a mix of tight supply, weak demand, and charge-offs of bad debt.
The U.S. Federal Reserve reported consumer credit fell by $21.6 billion, well below the $15.5 decrease recorded in June, marking a 10.4% annualized drop
(Excerpt) Read more at forbes.com ...
ALSO have two and three mortgages on your “forever house”.
When you default, the government will make it better for you and have responisible people “bail you out”.
(Pissed at this stuff.)
The economy is FUBAR and the only ones who don’t know/admit this are the clowns at the circus in DC...
[BUY BUY BUY NO MONEY DOWN NO PAYMENT NO INTEREST!!! BUY BUY BUY!!! ]
Are you crazy?
SEL SELL SELL WORTHLESS JUNK AT INFLATED PRICES: THEN BUY BUY BUY NO MONEY DOWN NO PAYMENT NO INTEREST!!! BUY BUY BUY!!!
actually that mortgage part may be a good plan
when I switched homes to my retirement place recently I pulled out $200k @5% for 30 yrs
I expect to pay it back with Obama mini-bucks
Now’s a good time to plunk $500 down payment on a Dodge Ram 3500 with all the toys, getting yourself obligated to a $1000 payment. And go use your card to buy some new furniture for the front room. Drop in to Dillards and snag a few wardrobes for a couple Grand.
We’re all consumered out and hung over! We just want to chill for a while. Maybe the Chinese can pick up the slack for a change!
>> when I switched homes to my retirement place recently I pulled out $200k @5% for 30 yrs &etc
Our house is totally paid off and me and missus Tick are completely debt free.
Yet I’m thinking about taking out a $100K HE loan myself, for the same reason.
One of many possible hedges against inflation.
Do you know how many flat panel teevees and jetskis you can buy for $100K? BUY BUT BUY BUY BUY BUY!!!
just kidding. We’d probably buy some land with the dough.
Or oil. Do you think olive or canola would be better? :-)
Consumer credit drives the economy. This means we WILL be going into a 1930s style depression. And soon.
I’ve not gone into commodities with my loan money.
Dollar averaged into stock ETFs this spring and made some bucks.
But I’m nervous as heck and ready to jump back out in a heartbeat.
Downside stops on everything.
>> But I’m nervous as heck and ready to jump back out in a heartbeat. Downside stops on everything.
nascarnation’s mom may have raised some ugly critters, but she didn’t raise no fools. :-)
Due to the way events have transpired (not necessarily my own financial acumen), I’m significantly in cash. I’m no doubt leaving money on the table, but I’m REALLY nervous about getting in. On the other hand, with inflation looming, I’m nervous about NOT putting cash to work.
Guess I’m just a nervous sort of tick.
If we don’t spend, we’ll go bankrupt. Joe Biden told me so!
Rooms To Go: NO PAYMENT FOR TWO FULL YEARS!! JUST WHEN YOUR FURNITURE GETS WORE OUT AND YOU HATE IT, YOU GET TO PAY FOR IT. Or default on it.
$14 trillion of wealth was sucked out of people’s savings with the stock market crash. Part of the credit contraction is the result of the drive to replace some of that, esp. for people 5 to 10 years away from retiring.
Part of it also is due to lack of confidence in the proposed policies of Obama. People are bracing for higher energy and health care costs and also higher taxes.
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