Posts Tagged ‘consumers’

“As the Financial Times reported yesterday, more than 1 million U.S. consumers are ‘at least two months behind on car loan repayments,’ noting that the delinquency rate in the $1.1 trillion market hit its highest level since 2009. And that’s not just limited to subprime borrowers. That figure includes everyone with a U.S. car loan….

The financial Times also cites, ‘Delinquencies on credit cards also rose by about the same amount over the period to 1.79% – the highest since 2011. The rise in bad loans comes despite persistently low borrowing costs and unemployment levels – suggesting lenders may be letting consumers take on bigger debt burdens than they can handle.

Lending to consumers with weak credit scores has been one of the fastest-growing parts of the industry. Still, the increased delinquency levels follow a period of rapid expansion and could be a natural consequence of that growth. Separate figures published on Thursday by the New York Federal Reserve showed the total amount of debt held by American households rose last year at the fastest clip since 2007.'” -Porter Stansberry

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I don’t have an iPhone… or a blingy Suburban…  But I probably have one thing these conspicuous consumers don’t: The house I live in is fully paid for.  I handle my money differently.  I could buy an iPhone or a Suburban tomorrow.  I wouldn’t need a penny of debt to do it.  But I won’t… Why?  Because I know those things won’t make me the slightest bit happier.  I’d be the same dolt I was before.” -Steve Sjuggerud

“So what sort of ‘business’ is government?  Answer: it is not a customary producer of goods sold to voluntary consumers.  Rather, it is a ‘business’ engaged in theft and expropriation — by means of taxes and counterfeiting — and the fencing of stolen goods.  Hence, free entry into government does not improve something good.  Indeed, it makes matters worse than bad, i.e., it improves evil.” -Hans-Hermann Hoppe

Yes…times have rarely been better for bankers.  In total, household borrowing has climbed back to $12.1 trillion − the highest level in five years − with balances growing across the credit spectrum once again, including mortgages and credit cards.  Happy days….  Our bankers have been world-class in providing more capital than ever before for corporations and consumers.  They’re doing a splendid job.  Don’t hate the bankers.  They only did what the government told them to do.  Besides… it’s not their money.  It’s yours.” -Porter Stansberry

“Capitalism is about voluntary exchange for mutual benefit.  Businesses don’t “take” money.  Only government (which has a monopoly on the legal use of force) and criminals do that.  Businesses merely collect the money that consumers and other businesses voluntarily trade for products and services.” –Alex Green           May I emphasize the word VOLUNTARY!  When government forces, or even provides an incentive for, someone to purchase a certain product, it no longer becomes the voluntary choice of a citizen; thus it is no longer a “free” market.