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U.S. debt load falling at fastest pace since 1950s
market watch ^ | June 8, 2012, | Rex Nutting

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 ...


TOPICS: Constitution/Conservatism; Extended News; Government; News/Current Events
KEYWORDS: consumerdebt; corporatedebt; debt; deleveraging; governmentdebt; householddebt; privatedebt; publicdebt; studentdebt
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1 posted on 09/30/2012 1:40:51 PM PDT by sopwith
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To: sopwith

This sounds fishy need some input.


2 posted on 09/30/2012 1:41:57 PM PDT by sopwith (don't tread on me)
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To: sopwith

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.


3 posted on 09/30/2012 1:44:14 PM PDT by ProtectOurFreedom
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To: sopwith

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.


4 posted on 09/30/2012 1:44:26 PM PDT by Perdogg
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To: sopwith

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.


5 posted on 09/30/2012 1:46:40 PM PDT by Stirner
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To: sopwith

He’s nuts. The national debt is unsustainable. Eventually this will lead to monetizing the debt and hyperinflation follows.


6 posted on 09/30/2012 1:46:40 PM PDT by RichardW
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To: sopwith

I call nonsense smoke and mirrors


7 posted on 09/30/2012 1:48:05 PM PDT by yldstrk (My heroes have always been cowboys)
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To: sopwith

Rex Nutting is just another way of saying Paul Krugman.


8 posted on 09/30/2012 1:48:34 PM PDT by smoothsailing
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To: sopwith
This sounds fishy need some input.

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?

9 posted on 09/30/2012 1:48:58 PM PDT by Pearls Before Swine
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To: sopwith
This is likely true, but even this article states the obvious, that while private debt has been getting paid down, or most likely defaulted, public debt has more than made up for the private debt paydown. But it still mostly all goes back to the taxpayers, so did they really get rid of the debt? All they did was begin to show prudence and self restraint, and then an uncontrollable government comes in and spends for them.

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.

10 posted on 09/30/2012 1:49:51 PM PDT by Vince Ferrer
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To: sopwith

These people need to fill their tanks with gas and then go grocery shopping.

Maybe then they will have some facts to think about.


11 posted on 09/30/2012 1:50:45 PM PDT by donna (Pray for revival.)
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To: sopwith

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%. “


12 posted on 09/30/2012 1:52:48 PM PDT by mrsmith (Dumb sluts: Lifeblood of the Media, Backbone of the Democrat Party!)
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To: sopwith

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.


13 posted on 09/30/2012 1:52:48 PM PDT by DemforBush (100% Ex-Democrat.)
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To: sopwith

hes talking private debt.


14 posted on 09/30/2012 1:53:54 PM PDT by hecht (restore Hetch-Hetchy, and screw San Francisco and Pelosi)
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To: sopwith

Is this from the same clown who said Obamugabe was a “conservative” when it came to spending?


15 posted on 09/30/2012 1:54:39 PM PDT by SoFloFreeper
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To: sopwith
As the taxpayers pay down their relatively meager debts, their portion of the national debt goes through the stratosphere. Too bad the federal, state and local governments aren't requires to send statements to the taxpayers showing what they owe.
16 posted on 09/30/2012 1:55:32 PM PDT by paul51 (11 September 2001 - Never forget)
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To: sopwith

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.


17 posted on 09/30/2012 1:56:00 PM PDT by Hugin ("Most times a man'll tell you his bad intentions, if you listen and let yourself hear."---Open Range)
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To: sopwith

Inflation...

Dollar Falls Most Since 2011 as Central Banks Bump Up Stimulus

http://www.bloomberg.com/news/2012-09-29/dollar-falls-most-since-2011-as-central-banks-bump-up-stimulus.html


18 posted on 09/30/2012 1:56:13 PM PDT by Hotlanta Mike (Resurrect the House Committee on Un-American Activities (HUAC)...before there is no America!)
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To: sopwith

Bankruptcies do not “repair” anything.


19 posted on 09/30/2012 1:56:33 PM PDT by SeeSharp
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To: sopwith
Individuals very much so. Government; no.
20 posted on 09/30/2012 1:57:12 PM PDT by HereInTheHeartland (Encourage all of your Democrat friends to get out and vote on November 7th, the stakes are high.)
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To: sopwith

It is BS!


21 posted on 09/30/2012 1:58:18 PM PDT by ColdOne (I miss my poochie... Tasha 2000~3/14/11 0bie don' t eatl my dog!)
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To: ProtectOurFreedom

Spending ones way out of debt is like screwing ones way out of having AIDS


22 posted on 09/30/2012 1:59:10 PM PDT by al baby (“If Barack Obama has a Harvard law degree, he didn’t earn that. Somebody else made that happen.”)
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To: sopwith

Obama plant!!!Pay no attention to that man behind the curtain!!!


23 posted on 09/30/2012 1:59:47 PM PDT by ontap
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To: ColdOne

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.


24 posted on 09/30/2012 2:01:53 PM PDT by jsanders2001
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To: al baby

ok that gave me a chuckle


25 posted on 09/30/2012 2:02:51 PM PDT by sopwith (don't tread on me)
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To: Stirner

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?


26 posted on 09/30/2012 2:05:07 PM PDT by nkronos
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To: jsanders2001

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


27 posted on 09/30/2012 2:08:37 PM PDT by jsanders2001
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To: ProtectOurFreedom; All

“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?


28 posted on 09/30/2012 2:10:05 PM PDT by mdmathis6 (We have grieved the Holy Spirit, with our Dark hearts and dark minds turned against God!)
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To: sopwith

Maybe because people walked away from their mortgages?


29 posted on 09/30/2012 2:16:46 PM PDT by EnquiringMind
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To: mdmathis6

Well put. and nice tag line.


30 posted on 09/30/2012 2:20:24 PM PDT by sopwith (don't tread on me)
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To: sopwith

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.


31 posted on 09/30/2012 2:22:21 PM PDT by WildWeasel
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To: sopwith
This sounds fishy need some input.

It is fishy. Here's your input:

Nutting's a Nutter

32 posted on 09/30/2012 2:23:26 PM PDT by Bernard Marx
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To: sopwith; Bernard Marx

Rex Nutting is MarketWatch’s Designated Obama Toadie.


33 posted on 09/30/2012 2:26:09 PM PDT by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
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To: sopwith
People are not spending because they are broke, thanks to Obama. The government handouts will break the American economy. National debt is soaring, 16 trillion and counting. America is broke. Obama wants to finish us off.
34 posted on 09/30/2012 2:27:18 PM PDT by Armaggedon
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To: sopwith

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.


35 posted on 09/30/2012 2:34:02 PM PDT by wizwor
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To: sopwith

It’s based on counting a bad mortgage as a loss of debt, but of course, someone still has that debt or lost capital.


36 posted on 09/30/2012 2:35:56 PM PDT by SampleMan (Feral Humans are the refuse of socialism.)
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To: RichardW
He’s nuts.
___________________________________

My exact thought. Just a lot of mumbo jumbo that means absolutely nothing with respect to this country's grave debt crisis.

37 posted on 09/30/2012 3:13:51 PM PDT by iontheball
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To: sopwith
You mean smells fishy. Like a fish rotting from the head first, so will centrally controlled economies/markets. Consumer debt is decreasing for a number reasons but government debt is skyrocketing. It's what's driving inflationary increases in the cost of food, health-care, energy, education and anything else an out of control government must continue to provide to its dependents.

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%.

38 posted on 09/30/2012 3:18:52 PM PDT by Errant
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To: sopwith

There’s a reason they call him Nutting.


39 posted on 09/30/2012 3:21:16 PM PDT by Lazamataz (The American news media, the 'Pravda Press', is fully Soviet-ized.)
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To: sopwith
Maybe why we can't afford more consumer debt. Of course, the
agenda driven MSM likes to keep this kind of thing quiet!


40 posted on 09/30/2012 3:24:38 PM PDT by Errant
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To: Stirner

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...


41 posted on 09/30/2012 3:33:39 PM PDT by Neidermeyer
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To: sopwith
Private debt may be declining (does it include student loan debt?) but note that incomes are declining also over the last years. With less money being earned, of course people can carry less debt


42 posted on 09/30/2012 3:46:15 PM PDT by PGR88
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To: PGR88
That's a scary chart (Median Household Income). While incomes fall, expenses like gas, food, health care and education continue to skyrocket. The middle class is getting squeezed out of existence. One one side you have the growing poor who are wards of the gub'mint or you are rich and able to escape if things get too bad.

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.

43 posted on 09/30/2012 3:53:07 PM PDT by SamAdams76
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To: ProtectOurFreedom

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?


44 posted on 09/30/2012 3:53:10 PM PDT by CommieCutter
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To: SamAdams76
Don't worry, they'll be plenty more milionaires, billionaires and even trillionairs
to their place.


45 posted on 09/30/2012 4:04:44 PM PDT by Errant
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To: sopwith; All

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

http://articles.marketwatch.com/2012-05-22/commentary/31802270_1_spending-federal-budget-drunken-sailor


46 posted on 09/30/2012 4:14:16 PM PDT by Red in Blue PA (Read SCOTUS Castle Rock vs Gonzales before dialing 911!)
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To: DuncanWaring

Clearly.


47 posted on 09/30/2012 4:17:01 PM PDT by Bernard Marx
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To: ProtectOurFreedom

“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.


48 posted on 09/30/2012 4:22:01 PM PDT by dalereed
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; Convert from ECUSA; ...

Thanks sopwith.
...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.


49 posted on 09/30/2012 4:47:46 PM PDT by SunkenCiv (https://secure.freerepublic.com/donate/)
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To: Stirner

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.


50 posted on 09/30/2012 4:59:21 PM PDT by Grams A (The Sun will rise in the East in the morning and God is still on his throne.)
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