Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

5 Charts That Show That Suddenly Something Is Going Wrong With The Consumer
Business Insider ^ | 11/28/11 | Joe Weisenthal

Posted on 11/28/2011 4:55:23 PM PST by Nachum

Today the NY Fed released its quarterly report on consumer credit, and in it is a wealth of charts on the nature of consumer debt. The charts did contain a red flag: For the first time since the recovery began, there were clear signs that in Q3, consumers started falling behind on paying their debts following several quarter of improvement. It's not across all categories, and it's not necessarily even dramatic in some cases, but it is notable for the reversal in the pattern.

(Excerpt) Read more at businessinsider.com ...


TOPICS: News/Current Events
KEYWORDS: charts; consumer; debt; default; hyperinflation; monetization; oil
Obamanomics
1 posted on 11/28/2011 4:55:29 PM PST by Nachum
[ Post Reply | Private Reply | View Replies]

To: Nachum
31% interest rates can do that to you.

We need Congress to act to put a cap on consumer interest rates.

2 posted on 11/28/2011 4:59:51 PM PST by muawiyah
[ Post Reply | Private Reply | To 1 | View Replies]

To: Nachum
Something Is Going Wrong With The Consumer

Yeah, has something to do with supply (of money in his pocket) and demand (can't buy anything).

3 posted on 11/28/2011 5:00:08 PM PST by PapaNew
[ Post Reply | Private Reply | To 1 | View Replies]

To: Nachum

What debt?


4 posted on 11/28/2011 5:00:36 PM PST by MrEdd (Heck? Geewhiz Cripes, thats the place where people who don't believe in Gosh think they aint going.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Nachum

Propaganda crap.

It’s always the fault of the ‘consumer’,not the bankers, Obama and his crony wall streeters, and the wild spending Democrats...


5 posted on 11/28/2011 5:01:13 PM PST by Freddd (NoPA ngineers.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: muawiyah

Not sure if there is a /s after that.

If not, and your serious..

They signed up to play the game. Read the contracts before signing up.


6 posted on 11/28/2011 5:01:57 PM PST by cableguymn
[ Post Reply | Private Reply | To 2 | View Replies]

To: Nachum
consumers started falling behind on paying their debts

No big deal, just bail all those out, like they bailed out the fatcorps, banksters and Wall Street.

No problem.

7 posted on 11/28/2011 5:03:40 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
[ Post Reply | Private Reply | To 1 | View Replies]

To: muawiyah

“31% interest rates can do that to you.”

The credit card companies are going to kill the goose that laid the golden egg. I haven’t used a credit card in years and I hear more and more people say they’re going to pay them off and go to using a debit card.

And it will serve them right that the market drove them under as they blindly drove consumers under.


8 posted on 11/28/2011 5:04:22 PM PST by MNnice
[ Post Reply | Private Reply | To 2 | View Replies]

To: Nachum
Third quarter? Wasn't that about the time senior citizens and the military were being taunted with not receiving their checks due to government default?

Did anybody in current administration stop and think about what that might do to consumer psychology? Maybe they just threw up their hands and said the heck with it, if the government can do it, so can I. Maybe they began to think it's hopeless so why bust their behinds when it doesn't matter anymore?

Sheer genius, that Bamster. What would we do without him.

9 posted on 11/28/2011 5:05:45 PM PST by RegulatorCountry
[ Post Reply | Private Reply | To 1 | View Replies]

To: MrEdd

Same here. I’m about as debt free as a man can be in the modern world.


10 posted on 11/28/2011 5:06:15 PM PST by cripplecreek (Stand with courage or shut up and do as you're told.)
[ Post Reply | Private Reply | To 4 | View Replies]

To: Nachum

Mrs. Hugin is a retail manager in an affluent area. The vast majority of her sales used to be on credit cards, now a majority are using cash. Plus she gets 2-3 rejected cards a day, where she used to get a couple a week. Just anecdotal of course, but somethings going on.


11 posted on 11/28/2011 5:06:35 PM PST by Hugin ("Most time a man'll tell you his bad intentions if you listen and let yourself hear"--Open Range)
[ Post Reply | Private Reply | To 1 | View Replies]

To: PapaNew

Something Is Going Wrong With The Consumer

Yeah, has something to do with supply (of money in his pocket) and demand (can’t buy anything).

The long nose of the law in the consumers business and products and the long arm of the law in their pockets taking the money.


12 posted on 11/28/2011 5:09:06 PM PST by mountainlion (I am voting for Sarah after getting screwed again by the DC Thugs.)
[ Post Reply | Private Reply | To 3 | View Replies]

To: cableguymn
You forgot ~ the contracts were changed by Congress.

Then there's this Visa Card scam Pelosi is associated with and Joe Biden's homestate, Delaware, is the home of high ticket credit card operations.

The fix was in.

Time to undo the fix.

13 posted on 11/28/2011 5:09:17 PM PST by muawiyah
[ Post Reply | Private Reply | To 6 | View Replies]

To: Nachum

I’ll bet that 99% of that Black Friday money spent was using credit cards.


14 posted on 11/28/2011 5:09:39 PM PST by SkyDancer ("If You Want To Learn To Love Better, You Should Start With A Friend Who You Hate")
[ Post Reply | Private Reply | To 1 | View Replies]

To: Nachum

I use a credit card for convenience, but I pay it off at the end of the month.


15 posted on 11/28/2011 5:10:23 PM PST by Cicero (Marcus Tullius)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Nachum
The banks got a bailout and cleaned up their balance statement.

Thats what I need

16 posted on 11/28/2011 5:11:28 PM PST by Selmore (Except for ending Slavery, Facism, Communism, and Nazism, War never has accomplished anything)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Nachum
DEPRESSION... but there I go being redundant again.

LLS

17 posted on 11/28/2011 5:14:01 PM PST by LibLieSlayer ("Americans are hungry to feel once again a sense of mission and greatness." Ronaldo Magnus)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Freddd
Yeah, those damn bankers and the wild spending democrats forced the poor helpless consumer to go out and charge thousands of dollars worth of useless electronic geegaws.
18 posted on 11/28/2011 5:15:42 PM PST by hinckley buzzard
[ Post Reply | Private Reply | To 5 | View Replies]

To: Nachum
"For the first time since the recovery began..."

There's that lie again.


19 posted on 11/28/2011 5:16:40 PM PST by ex91B10 (We've tried the Soap Box,the Ballot Box and the Jury Box; one box left.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Freddd

I see your point. But my payments were easy to make then 0bama decided that my industry needed some regulation.

Now my income is down 40% and those payments aren’t looking so easy to make.


20 posted on 11/28/2011 5:17:02 PM PST by ChinaGotTheGoodsOnClinton (Go Egypt on 0bama)
[ Post Reply | Private Reply | To 5 | View Replies]

To: Nachum
"For the first time since the recovery began..."

There's that lie again.


21 posted on 11/28/2011 5:17:02 PM PST by ex91B10 (We've tried the Soap Box,the Ballot Box and the Jury Box; one box left.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: PapaNew

Could also be that going Galt is growing.


22 posted on 11/28/2011 5:18:13 PM PST by Paladin2
[ Post Reply | Private Reply | To 3 | View Replies]

To: muawiyah
who are they borrowing from... Tony Soprano???
23 posted on 11/28/2011 5:19:22 PM PST by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
[ Post Reply | Private Reply | To 2 | View Replies]

To: MNnice

>>The credit card companies are going to kill the goose that laid the golden egg. I haven’t used a credit card in years and I hear more and more people say they’re going to pay them off and go to using a debit card.<<

No need. If you pay your credit cards down to zero every month (as EVERYONE should), there is no charge. I haven’t paid a dime in interest or any charges in 20+ years. And it is good to have the credit available in case of emergency (it would have to be a heck of an emergency since I keep 6 months’ gross pay in a liquid account).

A debit card is a bit more dangerous, since it is your money. I like to use the other guy’s money for a few weeks.


24 posted on 11/28/2011 5:20:43 PM PST by freedumb2003 (Herman Cain 2012 -- the man we need at the time we need him)
[ Post Reply | Private Reply | To 8 | View Replies]

To: cripplecreek
I worked hard to pay off our home and vehicles. You know the drill. I really need a new truck but not in this economy... my truck will have to make do for a few more years... by then we either will be recovering or it will be all over for us. I refuse to go into debt while we face the future that stands before us.

LLS

25 posted on 11/28/2011 5:21:54 PM PST by LibLieSlayer ("Americans are hungry to feel once again a sense of mission and greatness." Ronaldo Magnus)
[ Post Reply | Private Reply | To 10 | View Replies]

To: muawiyah

>>31% interest rates can do that to you.<<

I see here http://www.creditcards.com/credit-card-news/credit-card-interest-rate-report-1123-holiday-1276.php that the very worst credit is around 25% — the national average is around 15%

Do you have bad credit? Or did you find a particularly bad credit card servicer?


26 posted on 11/28/2011 5:32:17 PM PST by freedumb2003 (Herman Cain 2012 -- the man we need at the time we need him)
[ Post Reply | Private Reply | To 2 | View Replies]

To: SkyDancer
I’ll bet that 99% of that Black Friday money spent was using credit cards.

I work in the home office of a mid-level mall-based retailer and everyone from the office has to work at least four hours at a store on Black Friday. I spent most of my shift helping bag purchases so I got to see the transactions up close. I would say that it was about 85% credit cards, 15% cash. We had one woman who wanted to pay with a check, but the store manager told her that they don't accept them anymore. We had one declined card, but the woman just pulled out another card.

27 posted on 11/28/2011 5:35:38 PM PST by Bubba Ho-Tep ("More weight!"--Giles Corey)
[ Post Reply | Private Reply | To 14 | View Replies]

To: MNnice
The credit card companies are going to kill the goose that laid the golden egg. I haven’t used a credit card in years and I hear more and more people say they’re going to pay them off and go to using a debit card.

Years ago we had about five cards total. Paid them off in 2000 and have not used credit for anything, including our vehicle purchases.

We do not impulse purchase anymore but we plan for our needs and then our wants.

It was hard at first but we are so used to not having any bills, other than our utilities, that the mental burden has been totally lifted. We can never envision having debt again.

28 posted on 11/28/2011 5:39:37 PM PST by OldMissileer (Atlas, Titan, Minuteman, PK. Winners of the Cold War)
[ Post Reply | Private Reply | To 8 | View Replies]

To: freedumb2003

The rate is allowed ~ doesn’t matter if that’s what they charge or a lower rate.


29 posted on 11/28/2011 5:39:37 PM PST by muawiyah
[ Post Reply | Private Reply | To 26 | View Replies]

To: Nachum

I wonder if they’re hoping for bailouts. Some might lose incentive to keep the payments up to date if they think the government will bail them out if they fall behind.


30 posted on 11/28/2011 5:39:54 PM PST by MizSterious (Apparently, there's no honor when it comes to someone else's retirement funds.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: muawiyah

>>The rate is allowed ~ doesn’t matter if that’s what they charge or a lower rate.<<

Ah. Bigger government and more government intervention is ALWAYS a solution. And next time, you can always say 57% or 92% interest — the same logic applies.

The market will sort it out (as it has — that is why there is a big difference between good credit and bad credit risks). And, as I said in another post, if you pay it down to zero every month then the interest rate is 0%


31 posted on 11/28/2011 5:48:44 PM PST by freedumb2003 (Herman Cain 2012 -- the man we need at the time we need him)
[ Post Reply | Private Reply | To 29 | View Replies]

To: Selmore
The banks got a bailout and cleaned up their balance statement. Thats what I need

Not to mention the fatcorps and Wall Street.

Where do I sign up for my bailout, and how many bailouts we allowed?

32 posted on 11/28/2011 5:52:56 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
[ Post Reply | Private Reply | To 16 | View Replies]

To: Nachum
Ø

/nutshell

33 posted on 11/28/2011 5:54:30 PM PST by tomkat (para bellum)
[ Post Reply | Private Reply | To 1 | View Replies]

To: muawiyah

Sub-prime is like being the Johnny-on-the-spot plumber.

An extremely unseemly business to be seen in, volatile...but very lucrative.

They’ve learned the desparate are profitable.


34 posted on 11/28/2011 5:58:14 PM PST by sayfer bullets ("...and if it stops moving, subsidize it." - RR)
[ Post Reply | Private Reply | To 2 | View Replies]

To: muawiyah

Sub-prime is like being the Johnny-on-the-spot plumber.

An extremely unseemly business to be seen in, volatile...but very lucrative.

They’ve learned the desparate are profitable.


35 posted on 11/28/2011 5:58:23 PM PST by sayfer bullets ("...and if it stops moving, subsidize it." - RR)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Nachum
"For the first time since the recovery began..."

I stopped reading right there. This rag just lost all credibility with that statement.

36 posted on 11/28/2011 5:59:18 PM PST by Windflier (To anger a conservative, tell him a lie. To anger a liberal, tell him the truth.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Nachum

Articles like this really get me going. The people who compose this drivel are stupid, ignorant or dishonest.In 1995 it too 3.5 percent of my take home pay to fuel my vehicle for the week. Today with a more efficient vehicle it takes 16 percent. Most of it is due to increase in prices. Some is due to less income.

Even the best of our representatives with hundreds of thousands of dollars of income refuse to understand this. I feel I am not being represented by anyone in Washington.Surely not by Democrats who consider jobs to be union and government jobs only ,also surely not by the NAFTA supporting Republican types.All of our Representatives are in the tank for big banks and businesses.This is how they get elected. This amount of money does not change hands without guarantees. We have been Sandoskied.


37 posted on 11/28/2011 6:05:49 PM PST by rsobin
[ Post Reply | Private Reply | To 1 | View Replies]

To: freedumb2003

Usury is a crime ~ always has been. It’s one of the traditional targets for vigorous state action.


38 posted on 11/28/2011 6:40:17 PM PST by muawiyah
[ Post Reply | Private Reply | To 31 | View Replies]

To: MNnice

I use my one cc constantly but I keep it paid off constantly also so I don’t pay any interest. I also don’t carry cash anymore so the constant drain from my pocket on chips and coffee and stuff like that has ceased. I have more at the end of the month.


39 posted on 11/28/2011 6:42:30 PM PST by arthurus (Read Hazlitt's "Economics In One Lesson.")
[ Post Reply | Private Reply | To 8 | View Replies]

To: Bubba Ho-Tep
It should be called Black Friday after the first of the year when they get their credit card bills. Those of us who are more responsible with credit never showed up on Black Friday. I went to WalMart with my folks today and it was just as quiet as a mid-week in summer.

Loved the movie BTW.

40 posted on 11/28/2011 7:21:35 PM PST by SkyDancer ("If You Want To Learn To Love Better, You Should Start With A Friend Who You Hate")
[ Post Reply | Private Reply | To 27 | View Replies]

To: Nachum

I think it is the run up on gas prices that happened in the spring and into the summer. When gas goes over $3.00, people either cut spending or they go in to debt.


41 posted on 11/28/2011 7:31:47 PM PST by comps4spice (Liberalism is a threat to life and liberty in the USA.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: MNnice

I hear more and more people say they’re going to pay them off and go to using a debit card.

Yep, I’m a few payments from getting to zero balance. I’ve been avoiding the cash back arrangements but now will be using them.


42 posted on 11/28/2011 7:53:18 PM PST by sgtyork (The secret of happiness is freedom, and the secret of freedom, courage. Thucydides)
[ Post Reply | Private Reply | To 8 | View Replies]

To: Nachum

Only in this sick nation would the Dow spike 300 points because consumers in a recession spent a record amount (of cash? credit?) on cheap, useless items made in a foreign country. What % of the items people bought on Black Friday and Cyber Monday were made in China? 60%? 70%? 80%? 90%?


43 posted on 11/28/2011 7:55:03 PM PST by montag813
[ Post Reply | Private Reply | To 1 | View Replies]

To: freedumb2003

The credit card companies will also go to bat for you if your number is stolen and false charges show up, because it’s their money.


44 posted on 11/28/2011 7:55:44 PM PST by Styria
[ Post Reply | Private Reply | To 24 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson