Oct 7 2014

The new subprime is in auto loans: One third of all new auto loans are of the subprime variety. Repossession are up 70 percent.

Leave it to Wall Street to resurrect the subprime loan. This time, subprime has found a comfortable home in the automotive industry. In the car addicted US culture, subprime debt is back in a massive way. Subprime auto debt is the new risky debt product. This is a big deal. $924 billion in total auto […]

Dec 6 2013

Depreciating cars and expensive diplomas fueled by easy debt: 95 percent of consumer debt growth in past 12 months from cars and student loans.

New data from the Federal Reserve continues to highlight a reemergence of debt based consumer spending.  Americans are largely buying stuff they can’t afford with money they don’t have.  The Fed’s consumer credit report highlights a troubling trend.  Over the last 12 months 95 percent of all consumer debt growth has come from people buying […]

Nov 30 2013

The average American is broke and buying things they cannot afford with debt again. Debt based consumer financing again filling the gap of a shrinking middle class.

At a family Thanksgiving get together we typically have a usual crowd showing up to celebrate the year that has passed.  For many, this is the only time we see each other.  A familiar face was not there.  We asked what happened and apparently he had to work on Thanksgiving Day because stores are now […]

Nov 28 2012

Deleveraging on good debt and ramping up on consumption debt – growth in auto loan debt, collection amounts, and revolving debt.

The grand US household deleveraging event continues as debt is paid off or more likely, wiped away via foreclosures and bankruptcies.  What is hidden in the deleveraging trend is the growth of debt in certain spending categories.  Keep in mind that not all debt is bad.  For multiple decades the US had a cautious lending […]

Jul 16 2012

Refinancing debt into prosperity – most mortgage activity for refinances with applications up 97 percent from last year and car sales are down by over 50 percent from 2001.

Shuffling papers around on your desk does not mean you are being productive but might give the appearance of activity.  Refinancing debt in countries in an insolvent position may feel good for the moment, but ultimately the position is unsustainable.  You buy yourself a window of opportunity.  With the Federal Reserve pushing mortgage rates to […]

Jun 22 2010

Middle class shackled by banking debt chains. 113 million households each owe an average of $113,000 in banking debt for mortgages, student loans, credit cards, and auto loans. $45 trillion in household sector debt, government debt, and domestic financial sector debt.

The middle class has been systematically shackled by large amounts of debt, banking debt to be exact in a new form of financial serfdom.  Much of this started in the early 1970s on par with the deficits don’t matter policy that engulfed our monetary policy for the next four decades.  Like any giant structure built […]

May 30 2010

The great American debt purge – Americans more stressed out about debt. Mortgage, credit card, student loan, and auto loan debt up to $13.5 trillion. Average debt per household at over $120,000.

Every man, woman, and child would owe an average of $43,000 if we divided up mortgage, credit card, student, and auto debt in the United States.  Of course, this is based on the current population of 309 million.  But we know this isn’t exactly accurate since an infant really didn’t charge up a credit card […]


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