Posted on 01/23/2017 10:27:38 AM PST by Lorianne
Full title:These are the Countries with the Biggest Debt Slaves, and Americans Are Only in 10th place
Americans have been on a borrowing binge. To buy their favorite cars and trucks, they’ve loaded up on $1.14 trillion in auto loans. Young and not so young Americans are mortgaging their future with student loans that now amount to $1.28 trillion. Credit card and other debts are at $1.12 trillion. And mortgage debt stands at $8.82 trillion.
So, total household debt was $12.35 trillion, according to the New York Fed’s Household Debt and Credit Report for the third quarter 2016. That’s a massive amount of debt. Many consumers are struggling with it. Student loans are seeing enormous default rates, and repayment rates are far worse than previously disclosed. And “debt slaves” has become a term in the financial vernacular.
But it isn’t nearly enough debt…
Neither for the New York Fed whose President William Dudley, in a speech a few days ago, practically exhorted households to borrow more against the equity in their homes so that they blow this cash and drive up retail sales: “Whatever the timing, a return to a reasonable pattern of home equity extraction would be a positive development for retailers, and would provide a boost to aggregate growth,” he mused, with nostalgic thoughts of 2008.
Nor for the global rankings of debt slaves, where US households squeaked into the ignominious 10th place, barely ahead of Portugal! I mean, come on! Portugal!!
SNIP (there is more)
What about making things and exporting them?
An economy based on a perpetual circle of consumer debt in service to consumer spending (largely on imported items) NOT SUSTAINABLE. Did we not learn this lesson in 2008?
I call foul. You tesed us with “These are the Countries” and then failed to name them.
I call foul. You teased us with “These are the Countries” and then failed to name them.
This comes from the fraud of “I need to build credit so I’m getting a credit card.”
I use a credit card for everything. And they HATE me. I pay it off and collect all the rewards. I had some irresponsible person in the shop a while back who is trying to “rebuild” credit by applying for high interest credit cards. Stupid.
Pay no Attention, all of this is normal and expected with a Fiat Currency.
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