Credit card debt hits new record, raising warning sign

Cisco is a tech company. Internet type equipment.
Unless there is another Cisco, and not Sysco.

 

Vote for Democrats, they will take away your taxcuts and reduce your take home pay!

2016 missed 1.5% GDP growth. That's an "overheated" economy?

 

The millennials may not need a car in their life time.
Once self driving cars become mainstream, the thought is, people will just need a vehicle used like a bus.
Call up Uber or the like, the car picks you up and drops you off at your destination. And no driver involved. No need to store a car in a garage for 2 hours of use per day.

 

I think he meant Sysco not Cisco kid.

 

Well, there is another aspect to consider here.

For many years, Detroit continued to build cars that were shop queens and gas hogs. I remember years of Consumer Reports and others publishing data on maintenance and other quality dimensions for foreign and domestic autos.

People knew how to build cars with solid bodies, engines and transmissions, clean maintenance records, and good gas mileage numbers. They just weren't in Detroit.


BTW: I like your car buying strategy. I believe that works.

Plus, waiting a year or two to see how new models actually perform allows for better decision making than simply taking the shiny new paint job coming off the line this year.

 

Amen. There is huge potential here. Far less parking required. If it weren't for humans, highways could have increased capacity.

 

I ma not crazy about it either, but it some info for you.

https://www.thecreditsolutionprogra...ur-mortgage-is-sold-to-another-company/?all=1

 

Credit card debt is a personal issue. If you can’t afford that 4K tv now, it’s not a good idea that bet you’ll be able to in 18 months.

Don’t blame your financial issues on our tax cut.

 

Why not follow Uncle Sam's example and put it on the card?

 

Credit card debt is a huge personal problem. I constantly preach to my kids about the evils of credit card debt, along with pawn shops and payday loans.

I managed to get several thousands of dollars into credit cards earlier in my marriage. The debt was sold to a collections group and I negotiated a settlement for about 38% of the debt value. We cut up the credit cards and haven't used them in about 10 years. I'm sure I took a hit on my credit rating, but we went years without even financing a new car. I refinanced my house at 15 years and 2.9%. I'll be debt free in 4-5 years.

 

I knew that it wouldn't be long before someone would accuse me of being irresponsible, because, you know, in conservative black and white worldview that's what liberals are. I you had read the thread, however, you'd have the answer to that question.

In any case, while private debt is a personal issue, in aggregate it becomes a societal issue. Why? because too much private debt slows economic activity and causes recessions/depressions. That's why policies should be avoided that fuel booms through reckless private debt taking. Yet, the GOP favors such policies. Why? Because it shuffles money into their donor's pockets. Then, when the recession hits, these same donors can buy assets for pennies to the dollar because they have the money to buy, whereas the little guy HAS to sell to to job loss and lack of savings. It is all a giant cycle that increases wealth inequality. In each turn of the cycle, however, it gets more and more difficult to recover, because the consumer is more and more gutted.

 

Good for you. Keep plugging away at that debt. It feels good to be debt free. Once you are, you can take all that monthly payment for the debt service and put it into retirement funds. You won't even imagine how fast they will grow.

Credit cards used for overconsumption make people into slaves. Of course that's the reason why credit card companies go to college campuses and peddle them to unsuspecting college freshmen. Get them hooked early on, so they can be debt slaves for the rest of their lives.

 

Because of the incredibly low interest rates (perpetrated by the Fed, supported by the government), these credit card companies/banks can issue TONS of cards to people who have credit ratings that look FAR better then they really are.

Also, because people refuse to give up the luxuries that they actually do not make enough to own. So they take out lots of credit cards. lines of credit and other sources of cheap money to extend the time these people live beyond their means.

To put it simply, people are doing the same thing they did before the Great Recession....living WAY beyond their means. And there is NO WAY people have massive credit card debt because they are in such fantastic economic shape.

 

If college students do not know the concept of compound interest that is on them.

 

Stock prices throughout the world are laughably overvalued. The only thing worth noting that has brought the stock markets up from the lows of the "Great Recession" was, in essence, the interference and manipulation wrought by the Federal Reserve System (in the United States), and, the European Central Bank (in the EU). In short, these central banks propped up the markets and rescued those who were "too big to fail". They broke all the rules of a free-market economy, and they've never allowed those rules to go back into force again.

The next recession will also be a product of central banks' manipulation. The balance sheet run-up of FOUR TRILLION DOLLARS incurred when the Federal Reserve "bought" all that toxic, near-worthless corporate 'paper' during all those "quantitative-easings", "Operation Twist", and all the other sleight-of-hand is a real burden to them. The banks have been trying to push inflation upward so that the "pudge" in the economy can be reduced and 're-absorbed' because of higher prices, but it cannot work so long as the Fed keeps on micro-managing everything, including interest rates! These tiny, piss-ant increases we've seen in interest rates beginning in 2016 are a JOKE. But an even bigger joke is the ease with which the American "cattle" are so easily led into thinking that "happy days are here again", and that because of this so-called 'tax-reform', they should now think that they can "feel wealthy" and start running up debt again. There's one born every minute....

Stay liquid, keep a year's worth of cash where you can put your hands on it, be as independent from the American "cattle" as you can, and, oddly enough, don't buy gold and silver! The Fed indirectly manipulates the prices of all commodities, too!

 

Man, sure hope you haven't been 'fighting the Fed' (and the ECB and BOJ) and, hence, missed capturing some spectacular market gains over the last nine years, Pollycy.

As many Street Pros know, Federal Reserve monetary policy is the dominant factor in determining the market's major direction.

Those of us who acted on that information back in '08, when things seemed so bleak and when the Fed began their major easing, have literally made a ton of dough in this epic bull run...

 

This is just people being stupid.

If they can't pay off their balance at the end of the month they should forfeit their cards.

 

Doesn't the economic boom that liberals say comes from consumer spending balance it all out?

Nothing politicians do enables debt accumulation. The biggest cause of that has been the interest rates of the past 15 years. Besides, credit card debt represents less than one fifth of total average household debt. You're looking at the wrong problem.

 

Yeah, that threw me for a loop. Usually an overheating economy is indicated by rising inflation rates because demand can't be met. Last I checked that wasn't a problem.

 

I meant Sysco. They are a huge food distribution company. It's difficult to eat a router.

http://www.sysco.com

 

Every recession since the gold standard was done away with, it a result in part, and maybe mostly, due to the Fed reserve.
The question is, has there been less of them and less busts?
We haven't had a repeat of the 1930 depression. Which 2007 could've been, had it not been for Fed monetary policy.

 

Not yet.
Full employment is usually a 1st indicator of a heating up economy. And 5% UE is considered full employment. Or used to be.
If the Fed is on its toes, interest rates will rise to squash inflation.

 

Sadly, only PAIN teaches people to be responsible, assuming it wasn't pummeled into them growing up. Pain can come in many forms including physical and economic. Our Liberal education system and MSM is teaching millions that failure is no problem as long as govt is there to pick up the pieces. If you don't want to work, you can get your nice living wage and go play Xbox 24/7, with your Obama-phone and free internet just in case you want to get a job at some point.

 

There are 'business cycles' in a free-market economy that record the rise and fall of nearly all economies (except "planned" ones) on a roughly periodic basis. But, the Fed has now taken over total control. I can pinpoint the exact month and year, while Idiot Bush was in his second term -- August 2007.

The Fed was spawned by liberal, "progressive" Democrats, led by Woodrow Wilson, back in 1913. Within ten years, we had the beginnings of a huge speculative boom, and that was followed by a disastrous crash. There have been numerous recessions since the big boom times of World War II, but only one ended with any beneficial assistance from the Federal Reserve -- the horrible 'Stagflation' recession that was settling in after Reagan began his first term.

Reagan and the very best of all Federal Reserve Chairmen, Paul Volcker, put "Reaganomics" into action, and a little over two years later the entire country was enjoying a wonderful recovery. I remember it fondly. But since then, what have we had? Ben "Helicopter" Bernanke was probably the absolute worst Fed Chairman there has ever been, and the current Fed Chair., Madame Yellen was a Bernanke-clone... a Bernanke-without-a-beard, so to speak.

What's next? More Fed micromanagement of the economy, of course. The Fed took complete control of the economy almost 11 years ago, and they won't ever turn loose of it again.... The American "Free-Market" economy is dead -- murdered by the Federal Reserve combine.... Hint: what we've got today is very close to being the same variety of "planned" economy we used to sneer at in Communist countries....