You keep hearing about this great economic recovery. Well hell yeah.
Long as people can keep running up debt with plastic everything is great
There’s your big recovery right there.
Look how spectacular things are going in my state, Florida.
Now you know how they be buying the bling and flashing the cash in South Florida.
This is the final effort in the debt-fueled “recovery” of the US economy. Companies have gorged on debt. The federal government has piled on the most debt at the fastest rate ever. State and local governments, despite any balanced budget requirements, and even public pension funds have loaded up on debt. And consumers have been binging on debt to buy cars and get an education and buy homes at a feverish pace. Outstanding auto loans now amount to over $1 trillion. Payments are routinely extended over 72 months. Loan-to-value ratios have jumped. And automakers have become outright ecstatic.
What had been missing? Consumers charging up their credit cards. Now finally, the US economy has jumped over that hurdle too. Equifax explained in its eloquent manner, “These trends suggest that American consumers are getting on with their lives.”
The lives as debt slaves. Because they can’t maintain their standards of living with their stagnating household incomes. This too was part of the movie we’ve seen before.
The labor force participation rate is at an all time low – so the unemployment numbers are really meaningless. Debt is approaching highs again.
The global economy is imploding. There’s over a quadrillion in derivatives out there ready to ignite the minute interest rates budge, or some other credit event like a sovereign default occurs.
But it’s all good.
What’d you say? Greece? Puerto Rico?
Who cares? Let the good times roll.