agenda driven MSM likes to keep this kind of thing quiet!
Posted on 09/30/2012 1:40:43 PM PDT by sopwith
WASHINGTON (MarketWatch) — Everyone knows America has too much debt. What they don’t know is that things are getting better, not worse.
Little by little, our economy is reducing its debt burden, slowly repairing the damage caused by 10, 20 or 30 years of excess.
If you want to know why economic growth has been so tepid, here’s your answer. Four years after the storm hit, the economy is still deleveraging. And it’s very hard for any economy to grow when everyone is focused on increasing their savings.
(Excerpt) Read more at marketwatch.com ...
This sounds fishy need some input.
Four years ago a TRILLION dollar annual deficit was unthinkable. We’ve run four in a row with a max of about $1.4 TRILLION, all under OBastard’s watch.
How could we be deleveraging (ie, paying back debt) when we are accumulating debt at an all-time record pace? Smell like BS to me.
Maybe it’s the private sector deleveraging in anticipation of collapse. However, with the coming massive inflation, you want as much debt as you can service reliably — pay it off in fake Obama Bucks.
Rex Nutting claims that because 0bama signed a stimulus bill that was pasted in 2009, by the Congress that was elected in 2008, that the stimulus spending actually belong to Bush.
To the extent we are deleveraging, it results from debts being defaulted on. The savings rate went up in 2008 and 2009, but is back down to almost nothing.
He’s nuts. The national debt is unsustainable. Eventually this will lead to monetizing the debt and hyperinflation follows.
I call nonsense smoke and mirrors
Rex Nutting is just another way of saying Paul Krugman.
The chart shows a bit under 4 trillion in debt. I think he might be talking about private and corporate debt, and deliberately confusing the corporate with public. Yes, these sectors are deleveraging, but it's being picked up by the government.
Government debt--explicit debt--is 16 Trillion bucks. That doesn't count the actuarial debt of committed payouts for Medicare, Medicaid, and Social Security--which makes it more like $100 Trillion.
Isn't Rex Nutting the nutter who claims that Obama has spent less than previous presidents, and who promoted that by counting a bunch of Obama spending as Bush's to create an artificially high baseline?
As for no one on the private side advocating restraint, there used to be bankers who said no to a loan application, or credit card companies not giving out cards like candy. The restraint was that businesses could lose their own money.
These people need to fill their tanks with gas and then go grocery shopping.
Maybe then they will have some facts to think about.
Good read, thanks!
“In the U.S., household debt has now fallen to 84% of GDP from a peak of 98%. Nonfinancial corporate debt has fallen to 77% from a peak of 83%. Financial sector debt has plunged from 123% of GDP to 89%. Public debt has risen to 89% from 56%. “
My take on the article, FWIW:
“it was excessive private debt — not public debt — that caused the 2008 financial meltdown”
Yes, but what the author isn’t including is that much of that debt would have never have occurred if the banks hadn’t had the carrot and stick of knowing their losses would be covered by the Feds *and* being pressured to make housing loans to people who simply could not afford them. We’ve all seen the stories of people getting mortgages on three or four properties, knowing full well that in other times, they wouldn’t have gotten those loans because they simply didn’t have enough income or assets. So I see it as a little disingenuous to call it exclusively private debt when government played such a major role.
As for private debt growing more slowly than before. I would guess it’s because most people can’t afford to spend the way they did when the economy was decent. Both becuase their own incomes are down, and the fear of what might happen next. Businesses, likewise, are reluctant to take on new expansions for similar reasons.
hes talking private debt.
Is this from the same clown who said Obamugabe was a “conservative” when it came to spending?
My gtess us a lot of it has to do with bankruptcy and writing off of bad debts. Also a lot of folks can’t run up more because their credit is ruined.
Inflation...
Dollar Falls Most Since 2011 as Central Banks Bump Up Stimulus
Bankruptcies do not “repair” anything.
It is BS!
Spending ones way out of debt is like screwing ones way out of having AIDS
Obama plant!!!Pay no attention to that man behind the curtain!!!
Fact check and investigate Nutting’s background. Probably has ties to the current administration or Obama’s cronies. Don’t believe it for a second; too many indicators of financial collapse evident at present to do so.
ok that gave me a chuckle
Correct. Something like 2/3 of the private debt reduction is due to mortgage foreclosures.
Paying off debt and declaring bankruptcy may be counted the same by this article’s metric, but which would you rather see Americans doing?
It appears Nutting is nothing more than Obama’s propaganda spinning machine for all things related to the economy:
http://directorblue.blogspot.com/2012/05/obama-propagandist-rex-nutting-gets-b.html
http://article.wn.com/view/2012/05/30/Plenty_of_Nutting/
http://frontpagemag.com/2012/ann-coulter/figures-dont-lie-democrats-do/
Just lying on orders from his CIC der Führer
“you want as much debt as you can service reliably — pay it off in fake Obama Bucks.”
That is assuming that in a wildy inflationary period, businesses and governmental employers will increase the wages of their workers so that a lowly social worker or some janitor will get a million dollars a week that will just cover expenses that 600 dollars a week used to cover.(ala Germany in the late 20’s, except that our wheel barrows full of cash will be electronic debit cards).
I think they’ll try instead to keep wages low inspite of inflation or they’ll just go out of business and more massive unemployment will pile up. One’s unpayable debts may be used as an excuse to enslave and take away the freedoms of the the populace. Prices for durable goods and electronic trinkets and toys will drop because no one is buying them while food and fuel prices will go beyond atmospheric in scale. Gold and silver won’t be enough to buy food and fuel.
Some folks may think that the biggest assests will be the food,fuel, and guns they have squirreled away; yet I think the most priceless assets anyone will be fortunate to possess will be trusted frieds, family, and allies! Good people will need to be able to secure relationships with other good people in order to survive what is coming, even if there will be little at first that can be shared in common between them. Our love for one another has grown cold; can it ever be reignited again?
Maybe because people walked away from their mortgages?
Well put. and nice tag line.
The private sector is deleveraging due to not having confidence in the economy. Paying down private debt instead of investing is a fortress mentality and will continue as long as the President is for higher taxes / big government / anti-business.
Nutter is making a point against President Obama in my opinion.
It is fishy. Here's your input:
Rex Nutting is MarketWatch’s Designated Obama Toadie.
Here’s your input: People defaulting on mortgages+people renegotiating credit card debt+people filing for bankruptcy=lower private debt
At the same time, banks are not handing out subprimes like obama phones.
Naturally, the result of this is lower growth. The government’s response to this is more easing to encourage the banks to reignite the subprime engine.
The real story here is what would have happened if the government had stayed on the sidelines? Let’s face it, the Obama administration has faught self imposed restraint at every turn. Had the government not intervened, savers could have purchased nice homes with five or ten year mortgages, been out of debt before their kids were ready for college, and had plenty of time to save for retirement.
It’s based on counting a bad mortgage as a loss of debt, but of course, someone still has that debt or lost capital.
My exact thought. Just a lot of mumbo jumbo that means absolutely nothing with respect to this country's grave debt crisis.
Eventually we will see price controls and shortages of essential goods and services at a time when our currency becomes worth less and less.
I could go on, but I wouldn't want to depress ya...
For a more detailed explanation, I recommend the following:
The Source of High Inflation: Government Spending
Btw, I recently saw where GA sales have fallen over 400%.
There’s a reason they call him Nutting.
To the extent we are deleveraging, it results from debts being defaulted on. The savings rate went up in 2008 and 2009, but is back down to almost nothing.
**********************************************
CORRECT... Income is down about 9% for the middle class , expenses are up , savings are non-existant for the vast majority , people are moving down , very few are able to fight the tide anymore... we have approx 10 million people not paying their mortgages because they’re broke... 10M multiplied by $1,500/month means we artificially have $15Billion in everyday spending on groceries , clothes and gas that we wouldn’t otherwise have ...
Obamacare is coming ,,, tax increases are coming ... we’re printing money and printing money and printing even more money ... if you can borrow do so now and borrow every last penny ... if the entity you borrowed it from exists 5 years from now pay it back with funny money Obamabucks...
Heard that Steve Wozniak was taking his billion dollars to Australia. There are going to be a lot of millionaire ex-pats if this crap keeps up.
I think the article is about personal debt hence people not consuming as much is slowing the economy.
But still.. if your currency is going to the pot what is the good news about personal savings?
This Nutting guy is a real nut. Another article of his:
Obama spending binge never happened
Rex NuttingCommentary: Government outlays rising at slowest pace since 1950s
Clearly.
“However, with the coming massive inflation, you want as much debt as you can service reliably”
I live my life just the opposite!!!
Everything I have ever bought in my life has been for cash except for my first home that has been free and clear for 25 years.
...it's very hard for any economy to grow when everyone is focused on increasing their savings....on increasing their savings before the Obama Tax Increase hits in 2013.
The savings rate went up in 2008 and 2009, but is back down to almost nothing.”
I don’t know about everybody else but in spite of eliminating debt, because of increased cost in taxes, gasoline, food, medical care, insurance and other necessities, there is very little left over to save.
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