Thursday, July 12, 2012
Yesterday's 10 Year US Treasury Auction
30 year mortgage at 3.56%, with 15 year at 2.86%.
I guess we have a two car garage debt in this country.
Amazingly enough, unsecured consumer debt can be converted to secured debt, so it never really was unsecured debt at all. This is one of the biggest consumer scams/lies of all times.
Besides the KNOWN credit card debt of around one trillion dollars, there is ANOTHER trillion dollars of credit card debt that has been converted from unsecured to secured debt via the court system and is NOT COUNTED as credit card debt anymore!
This 3 trillion dollars of consumer debt IS GROUND ZERO as to why the economy can't get going.
Unfortunately, the media champions "debt forgiveness" from the democrat progressive lunatics, and "get another job" from the neo con republicans on how to fix this problem, both solutions are completely stupid and won't work.
Interest rate reductions on all debt for all those who pay down their debts every month is THE SOLUTION that would begin to heal the economy almost instantly.
Thanks for mentioning the debt albatross hanging around consumer's necks, very few media people bring it up because they are all in the pockets of the rich elite whether they know it or not.
I forgot - low reported SA claims seem to be a function of seasonal adjustments, so today's initial claims report should be consumed with half a shaker of salt.
Indeed. I went with The Price Is Right Cliffhanger Theme.
See Snarky Mark's excellent non-revolving debt PER CAPITA chart.A lot of that is college debt.
And when they get out of college, just think of all the real estate they will almost be buying! Sigh.
I truly question whether the Fed is now accomplishing anything at all with its attempts to stimulate. They have pushed yields so low that they have created a massive need to save, which would logically send us to the Japanese Twilight zone.
Yes!! As a saver...
1. The lower rates go the more money I must save to compensate.
2. The lower rates go the more stuff I am likely to hoard. Saving and hoarding are the same.
Surely I cannot be alone. What would the price of oil be right now if there were no hoarders? How does a higher oil price help our economy?
The Fed has mastered the intended consequences. Seems completely clueless as to the unintended consequences though.
Depends on what you think their goal is. If one were to assume that the goal is to allow the Federal government to grow its share of the economy, they're accomplishing quite a bit. Rates are low and demand for "safe" "investments" is high, so government debt grows to the sky.
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