Nearly 1 in 3 American workers run out of money before payday—even those earning over $100,000

[Mrs. Peel 7,156]

I give some of you credit for your stamina! I truly believe if someone posted: the sky is a really nice blue today... @Sniper would proceed to say, No dammit, it's azure - and spend the next 50 posts defending why azure is not actually "a really nice blue" and therefore, that person is horribly wrong... possibly even blind! No doubt, there'd be some fancy color wheels thrown in, too, for the extra dramatic bang! 

About halfway through, I think I actually stopped caring about the economy.... but I'm stilling enjoying the sheer madness of this thread... keep going, guys!

[JackDaWack 2,895]

1 hour ago, Sniper said:

Lowering interest rates and printing money (which has been going on since last Fall).

I'm still waiting for you to tell me the financial theory that supports this action during a "great" economy.

Lending and loans stimulates the economy.. that's a proven strategy. 

People are making money, they make payments. Their credit increases if their income allows. This level of credit is not available in a bad economy. People are so confident in their cash flow NOW they feel fine taking on that debt

Student loan default at 7 year low..

https://www.google.com/amp/s/www.washingtonpost.com/education/2019/09/25/education-dept-says-fewer-people-are-defaulting-federal-loans/%3foutputType=amp

Compared to

CAR defaults are at all time high due to poor regulation and subprime loans.  

Mortgage debt shows the housing market is up, AND defualt rates are low.

The obvious answer is that the next recession will hit hard for people who maxed out their credit. 

The economy is gonna gradually slow and we're headed into a recession.. doesnt mean we're in a bad economy NOW.

 

[1LtCAP 4,262]

i think (federally) the debt is simply irresponsible spending for the better part of 2+ decades. congress just keeps appropriating money to things that it shouldn't be. i'm sure that the QE bs from last administration didn't help. then we have congress STILL going on a spending spree even though taxes were lowered.

 what has to happen, is that the money has to be cut off. no new spending at ALL till debt is paid down, and spending is under control. if any of us ran our households or business's the way the govt is run, we'd be in prison.

[Zeke 5,504]

1 hour ago, Mrs. Peel said:

I give some of you credit for your stamina! I truly believe if someone posted: the sky is a really nice blue today... @Sniper would proceed to say, No dammit, it's azure - and spend the next 50 posts defending why azure is not actually "a really nice blue" and therefore, that person is horribly wrong... possibly even blind! No doubt, there'd be some fancy color wheels thrown in, too, for the extra dramatic bang! 

About halfway through, I think I actually stopped caring about the economy.... but I'm stilling enjoying the sheer madness of this thread... keep going, guys!

I activated every credit card that has arrived in the mail because of this thread

[Handyman 5,682]

1 hour ago, Zeke said:

I activated every credit card that has arrived in the mail because of this thread

 

[Sniper 6,372]

4 hours ago, JackDaWack said:

Student loan default at 7 year low..

So......

....."As of the first quarter of 2019, there are an estimated 5.2 million federal student loan borrowers in default. By contrast, 18.6 million borrowers are current on their federal loan payments."

That's 28%, is that considered good in  a "great" economy?

How about the delinquency rates:

......"Delinquent U.S. student loans reached a record $166 billion in the fourth quarter. But since “delinquency rates for student loans are likely to understate effective delinquency rates” by about half, according to the Federal Reserve Bank of New York, the figure is probably a far cry from reality. Factoring for understatement would imply that about $333 billion in student debt has not been serviced in at least three months."

https://www.bloomberg.com/news/articles/2019-02-22/u-s-student-loan-delinquencies-hit-record

I'm sure those kids are just investing their money in the stock market instead, right?

4 hours ago, JackDaWack said:

CAR defaults are at all time high due to poor regulation and subprime loans.  

Lets look at those numbers:

......"Serious auto-loan delinquencies – 90 days or more past due – in the second quarter, 2019, jumped 47 basis points year-over-year to 4.64% of all outstanding auto loans and leases, according to New York Fed data released today. This is about the same delinquency rate as in Q3 2009, just months after GM and Chrysler had filed for bankruptcy."

It's a good thing nobody needs a car in a "great" economy.... they can just use Uber, because everyone knows, a car is a luxury, right?

......"Some 7 million Americans are 90 days or more behind on their auto loan payments, new data released by the Federal Reserve Bank of New York shows. The number of delinquent loans follows a trend of steady increases since 2011 and has risen to the highest level in the 19-year history of the bank’s loan origination data. "

https://www.bankrate.com/loans/auto-loans/auto-loan-delinquencies-rise/

4 hours ago, JackDaWack said:

Lending and loans stimulates the economy.. that's a proven strategy. 

Even when a lot of it is unaffordable and not being paid back by the borrowers? Just because banks GIVE loans doesn't mean the borrower can afford to pay them.

4 hours ago, Mrs. Peel said:

No dammit, it's azure - and spend the next 50 posts defending why azure is not actually "a really nice blue"

@Mrs. Peel, what color blue do you like?

4 hours ago, Mrs. Peel said:

but I'm stilling enjoying the sheer madness of this thread..

Maybe you should call it hyperbole, devoid of data but FULL of opinion, by some.. That would be more accurate.

You should go stroll over to this site, it's very educational. Here's a snapshot... It will change (by a lot) by the time you get there:

https://www.usdebtclock.org/

 

[Mrs. Peel 7,156]

All blues are nice. How's that?

[Zeke 5,504]

Teal

[Bklynracer 1,263]

16 minutes ago, Sniper said:

5 hours ago, JackDaWack said:

CAR defaults are at all time high due to poor regulation and subprime loans.  

Lets look at those numbers:

......"Serious auto-loan delinquencies – 90 days or more past due – in the second quarter, 2019, jumped 47 basis points year-over-year to 4.64% of all outstanding auto loans and leases, according to New York Fed data released today. This is about the same delinquency rate as in Q3 2009, just months after GM and Chrysler had filed for bankruptcy."

 

Looks like there will be some great used car deals soon

[JackDaWack 2,895]

1 hour ago, Sniper said:

So......

....."As of the first quarter of 2019, there are an estimated 5.2 million federal student loan borrowers in default. By contrast, 18.6 million borrowers are current on their federal loan payments."

That's 28%, is that considered good in  a "great" economy?

How about the delinquency rates:

......"Delinquent U.S. student loans reached a record $166 billion in the fourth quarter. But since “delinquency rates for student loans are likely to understate effective delinquency rates” by about half, according to the Federal Reserve Bank of New York, the figure is probably a far cry from reality. Factoring for understatement would imply that about $333 billion in student debt has not been serviced in at least three months."

https://www.bloomberg.com/news/articles/2019-02-22/u-s-student-loan-delinquencies-hit-record

I'm sure those kids are just investing their money in the stock market instead, right?

Lets look at those numbers:

......"Serious auto-loan delinquencies – 90 days or more past due – in the second quarter, 2019, jumped 47 basis points year-over-year to 4.64% of all outstanding auto loans and leases, according to New York Fed data released today. This is about the same delinquency rate as in Q3 2009, just months after GM and Chrysler had filed for bankruptcy."

It's a good thing nobody needs a car in a "great" economy.... they can just use Uber, because everyone knows, a car is a luxury, right?

......"Some 7 million Americans are 90 days or more behind on their auto loan payments, new data released by the Federal Reserve Bank of New York shows. The number of delinquent loans follows a trend of steady increases since 2011 and has risen to the highest level in the 19-year history of the bank’s loan origination data. "

https://www.bankrate.com/loans/auto-loans/auto-loan-delinquencies-rise/

Even when a lot of it is unaffordable and not being paid back by the borrowers? Just because banks GIVE loans doesn't mean the borrower can afford to pay them.

@Mrs. Peel, what color blue do you like?

Maybe you should call it hyperbole, devoid of data but FULL of opinion, by some.. That would be more accurate.

You should go stroll over to this site, it's very educational. Here's a snapshot... It will change (by a lot) by the time you get there:

https://www.usdebtclock.org/

 

It says a lot when student loan is being paid back at an greater rate then prior to the recession. A point you clearly avoided acknowledging.  It also says a lot when home ownership is extremely high and mortgage defaults are low. Another point you out  right ignored.Both have large total debt, but that's not the point, people are paying both those off at greater rates than before. 

It seems like a majority of Americans are doing just fine, despite your claims. They are even paying their credit cards off at decent rates, not even comparable to 2010.

I dont know why you think the sky is falling if 1 in 15 americans loans a car they cant afford and has it repossessed. While the other 2/3's of car owners out right own their vehicles.

I'm supposed to be worried because out of 270+ million american adults 7million bought a car they cant afford?

[Sniper 6,372]

46 minutes ago, JackDaWack said:

They are even paying their credit cards off at decent rates, not even comparable to 2010.

Oh my, your assertion is wrong again...

...." Debt from credit cards hit a record high in 2019, driven by young borrowers and aggressive spending, according to The Wall Street Journal. Despite a healthy economy and robust job market, the number of people who fell behind on payments increased. 

Serious delinquent credit card debt is classified as payments that are late by 90 days or more. That number went up to 5.32 percent in Q4, the highest it has been in about eight years — it was 5.16 percent in Q3. The rate for serious delinquency among borrowers aged 18 to 29 years went up almost 10 percent to its highest level since Q4 of 2010 at 8.91 percent."

55 minutes ago, JackDaWack said:

It says a lot when student loan is being paid back at an greater rate then prior to the recession. A point you clearly avoided acknowledging. 

Really, you got that from the record level of delinquencies?

57 minutes ago, JackDaWack said:

It seems like a majority of Americans are doing just fine, despite your claims.

The topic wasn't the "majority", please keep focused and don't pull a Greenday Straw man. In your "Best Economy Ever", most benchmarks of economic stability in families have been heading SOUTH, in some cases, approaching levels close to the previous recession. Somehow, you still think people are in the best economic shape ever. 

Funny, I'm STILL waiting for you to post the FIRST chart or data link to support your hyperbole and narrative. All I've seen is the Greenday shuffle, all assertion and no data.... just null posts... that just confirms to me, you got nothin... Sad...

[JackDaWack 2,895]

8 hours ago, Sniper said:

Oh my, your assertion is wrong again...

...." Debt from credit cards hit a record high in 2019, driven by young borrowers and aggressive spending, according to The Wall Street Journal. Despite a healthy economy and robust job market, the number of people who fell behind on payments increased. 

Serious delinquent credit card debt is classified as payments that are late by 90 days or more. That number went up to 5.32 percent in Q4, the highest it has been in about eight years — it was 5.16 percent in Q3. The rate for serious delinquency among borrowers aged 18 to 29 years went up almost 10 percent to its highest level since Q4 of 2010 at 8.91 percent."

Really, you got that from the record level of delinquencies?

The topic wasn't the "majority", please keep focused and don't pull a Greenday Straw man. In your "Best Economy Ever", most benchmarks of economic stability in families have been heading SOUTH, in some cases, approaching levels close to the previous recession. Somehow, you still think people are in the best economic shape ever. 

Funny, I'm STILL waiting for you to post the FIRST chart or data link to support your hyperbole and narrative. All I've seen is the Greenday shuffle, all assertion and no data.... just null posts... that just confirms to me, you got nothin... Sad...

https://fred.stlouisfed.org/series/DRCCLACBS

Wow look at that..... debt is up but people are still paying it off....  actually more people are still paying their credit cards than in the past 20+ years.

I already posted the data for student loans being paid off at record rates... the sad part is you think a record number of people are paying it down in a bad economy... 

Remind us all how people making loan payments is a bad thing?

Youre basing your entire arguments around total debt, and are completely ignoring that a majority of americans are able to pay it down...or at least meeting their payments. 

 

So I've provided you data on home mortgages, credit cards, and students loans. Which all see RELATIVE low delinquency rates over time...and no where near recession levels.. while auto loans may be the highest, the economy isnt dependent on 7 million people defualting on a car loan, out of 300million registered vehicles.

 

How is that a bad economy?

Pretty sure another article here sums up your hysteria 

https://www.google.com/amp/s/www.marketwatch.com/amp/story/guid/C0C35CA2-BED2-11E9-845C-4873AD0947CA

 

 

 

[Handyman 5,682]