Household debt jumps the most in 12 years, Federal Reserve report says

https://www.cnbc.com/2020/02/11/hou...-in-12-years-federal-reserve-report-says.html
https://www.washingtonpost.com/busi...1-trillion-budget-deficits-are-unsustainable/

The data also show that transitions into delinquency among credit card borrowers have steadily risen since 2016, notably among younger borrowers,” Wilbert Van Der Klaauw, senior vice president at the New York Fed, said in a statement.

In past recessions, the Fed has played a large role in reviving the economy by sharply cutting interest rates. But Powell has been warning lawmakers that the central bank won’t have much ammunition left to fight the next downturn because interest rates are so low

The Fed chair’s warning comes as the U.S. federal debt has grown by about $3 trillion since President Trump took office, and the president’s latest budget proposal submitted this week would add another $5 trillion to the debt over the coming decade.

Poor policy has accounted for the largest debt in the history of the United States alongside massive bailouts, numerous fed injections, three rate cuts and QE — all during what is being called by supporters of this administration a “rocket ship of an economy”. All of the mechanisms to pull us out of a recession have already been exhausted in efforts to win the next election.

 

Your title refers to PERSONAL (household) debt, but your comment above refers to state debt. Which is it?

 

There are TWO links — they are CORRELATED to one another.

The FED will be unable to intervene should the consumer debt bubble pop.

 

As I said days earlier, this is not good, and it reminds me too much of the Bush Jr Admin, when it claimed it was in a good economy. These times will not last forever, and once again we will be in an economic pickle if it doesn't change. In addition, not sure when we such growth that Trump claims, he is complaining about the rates to the Fed; if the times are that well, the rates should reflect the growth rate.

 

PERSONAL debt has nothing to do with state debt, since it's discretional.

 

There are two economies going on right now. About 60% of America is doing pretty well. We have decent jobs, some stock, and a house with some equity. This economy has been good for people like us.

Then there's the other 40% (a lot younger), who don't own stock, work a lousy job (or several of them) with lousy benefits, and have been priced out of the housing market. Like Steve Bannon says, these people are essentially Russian serfs. They own nothing. Their future is depressing. The system has failed them.

This 40% will decide the election, and if it's Bernie, they're going to overwhelmingly support him and turn out for him in droves. Bernie, whatever you think of him, is going to fundamentally change the whole system. Or die trying. Trump promised to "drain the swamp", but nothing's changed for these people. They still work shitty jobs. They still don't own anything. They still can't cover even a minor emergency.

 

The debt train was key to the economy since 2008.

 

Dude your link talks about personal debt but your post then talks about gov't debt. You really should read more before you post.

 

Nothing has really changed in the trump economy either — massive debts, corruption at virtually every level, fewer jobs added in the last three than in Obama’s last three, zero structural issues addressed (healthcare, education, environmental, infrastructure) — they just have someone that speaks to them on their level...

I love when my family members exclaim how well the stock market is doing and when asked what stocks they own are doing well they immediately switch the subject (they don’t own any)

I don’t know if Bernie will be able to get much done besides executive orders with a Republican Senate but at least it is a new direction. Millennials are about to be the largest voting block and if/when they turn out we will see major changes.

 

1) The 'system' has not failed them. The 'system' does not make their personal decisions and choices. Any of these young people in the 40% can choose to adjust their lives to fit the conditions - stay in the family home until they can afford to buy property anywhere they can afford, make sure they do well in high school so they can access the most lucrative degrees, don't live like they're middle class if they're not, don't take up expensive vices, exercise brutal discipline when it comes to saving money, etc etc. All choices.

2) If the results of their refusal to adapt is what drives them to vote for Bernie, it means they're looking for a handout rather than doing any of the above. That should terrify all Americans.

 

Link(s), plural.
Hurry, deflect...

 

The system has absolutely failed the average American in exchange for profits.

We have the highest debt in the world — almost 200k per taxpayer — they largest military, the largest infrastructure, the largest economy but we cannot do what every other first world nation on earth has been able to provide it’s citizens. Why is that?

 

2019 was revised up since this infographic and 2020 will be even higher.

 

He will die trying. The one thing that Bernie bro’s cant seem to wrap their head around is that Bernie is not going to be a king. He cant dictate Medicare for all. Look I support Medicare for all, its the only way to control costs. BUT, the legislature is bought and paid for by the healthcare lobby. We cant even get price protections for Medicare to negotiate pricing with drug companies, and you think the legislature will approve Medicare for all ?

I agre that we need fundamental change of the system. But Bernie is NOT the answer. He has some great ideas, but he has no plane to achieve this. That is born out in that fact that he isnt pushing down ticket races that could help his agenda, here just telling us all the HE is going to do when he gets the office.

 

If Bernie wins, then the Dems are having an amazing night and they're also going to flip the Senate. And if the Dems flip the Senate, and Bernie's president, and Pelosi keeps the House, which she's certain to do...

Do the Dems nuke the filibuster? I think they do. Mitch McConell resisted the pressure. I don't know if Chuck Schumer can.

 

I wish they would nuke the filibuster, but they wont. They always bring a knife to a gunfight.

I hope we do take the senate, but you also have to remember, Rural america votes republican, and most of the senate races up are rural.

 

If Bernie wins the nomination....err, ummm....if the DNC allows him to win, then the dems are toast.

 

Consumer debt has risen by 26.8 % since the trough in the second quarter of 2013. Farm bankruptcies are at an 8 year high right now.

 

18% of those earning $100,000 per year are living paycheck to paycheck.

 

Then they're living outside their means. I don't make half that and still I feel as though I live like a king...

 

So 18% of them are stupid. What's your point?

 

Why do your citizens have $200k debt per head? What are they choosing, that puts them in that position? Why aren't you looking at BEHAVIOURS?

 

We are — overall — a nation that prioritizes short term benefits over long term repercussions. This can bee seen across the board in our healthcare, education as well as our politics.

 

Nah, lack of personal responsibility.

I have three credit cards.

If you've maxed a few out and cant pay them off... well, you'll know not to do that again next time.

But its certainly not my job to help you out, nor do I care to.

 

Here is a sad truth for all the Trump haters. You take one component of an economy household debt rises and try to pretend that it is a harbinger of bad news, but did you consider when the economy is good and people feel good about their jobs and income and economic future they go out and spend. Some buy new cars that they put off during the evil reign of the Messiah, people will go get that Best Buy credit card and upgrade to a 65" TV. They take a vacation and put it on a credit card because they feel good about being able to pay it off later. A good strong economy has always increased consumer debt. It is a sign of good times. Sorry.

So you spin it one way, "THE END IS NEAR" and I will spin it another "INCREASE IN HOUSEHOLD DEBT, PROOF OF A GREAT ECONOMY"

Spin Class 101