The Fed is trying to stimulate buying by the consumer by just increasing the money supply through the banking system. THAT WILL NOT WORK.
The problem here is credit worthiness of the consumer which is trickling up to businesses. Banks have restricted credit to only those with very high credit scores no matter how low interest [...]
(On the bright side, if the government hadn’t pumped in the money, it would now be worth zero). The company’s tangible book to equity ratio is now more than 50-to-1, and the firm’s gigantic mountain of consumer debt “assets” will almost certainly face enough writedowns in the next several quarters to wipe out the equity [...]
-If the Auto Industry fails, we will finally technically be in a depression. Yes I know the Fed numbers…but they are lying and you should know this by now you silly wabbit.
-Health care will soon fail. Sick Americans can’t produce as well, that will be a bailout.
-State workers will need to get paid. Imagine your [...]
From RGE Monitor:
One can count at least 20 separate or complementary causes that will sharply reduce consumption in the next several years:
· The US consumer is shopped-out having spent for the last few years well above its means.
· The US consumer is saving-less as the already low household savings rate at the [...]
It’s good to see that consumers think it’s smart to pay off debt. Too bad the message hasn’t penetrated the thick skulls in government.
If unemployment rate is to hit 8-8.5% as Goldman Sachs says then we have numerous 100K, 200K, or even 300K months to come. Certain states will likely see double digit unemployment. [...]
1. 70% of our GDP is based on tapping credit and spending money we dont have…but now we will go through the greatest tightening of credit since the great depression…this is a fact…when the bankers are hanging on for dear life you really think they will float the subprimes/alt-A’s to the level we saw just [...]
Prices will correct significantly to
the downside to achieve congruency unless
some new impetus for mass borrowing by
consumers emerges…which ain’t happening.
Consumers are maxed out with debt and
the assets they used for collateral for
creating more debt are declining in value.
Show’s over folks.
Paying for McDonalds drive-thru
with a credit card should have made
it obvious we were near the [...]
By Senator Bernie Sanders
The current financial crisis facing our country has been caused by the extreme right-wing economic policies pursued by the Bush administration. These policies, which include huge tax breaks for the rich, unfettered free trade and the wholesale deregulation of commerce, have resulted in a massive redistribution of wealth from the middle [...]
Consumer debt — including credit cards and auto loans but not including mortgages - increased $4.6 billion to $2.59 trillion, the Fed said. It was the slowest growth in credit since the 1.9% growth rate in December.
June’s growth was revised down from 6.7%, or $14.3 billion, to 5.1%, or $11 billion.
Slowing consumer credit means that [...]
SAN FRANCISCO (MarketWatch) — How will you pay for your child’s college education? Most families cobble together money from a variety of sources, though almost four in 10 said they cover college costs without borrowing any money, according to a new survey for student-loan maker Sallie Mae by polling firm Gallup.
And a good portion of [...]
Credit is drying up everywhere. Banks are now concerned (finally), about rising credit card debt. They have every reason to be. The bankruptcy reform act of 2005, which encouraged such reckless lending is now blowing up in lenders’ faces.
Banks and credit card companies wrote that bill. They got everything they wanted. It goes to show [...]
WASHINGTON (AP) — The Federal Reserve reported Monday that more banks are tightening lending standards on home mortgages, other types of consumer loans and business loans in response to a spreading credit crisis.
The Fed said t the percentage of banks reporting tighter lending standards was near historic highs for nearly all loan categories.
The survey, conducted [...]
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