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ubikk
Joined: 27 Jul 2006
Posts: 2303
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| Posted: Mon Aug 07, 2006 2:40 pm Post subject: Credit Card debt jumps unexpectedly by $10.3 billion |
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How much longer can this go on? Will we see more bankruptcies? I predict yes.
Consumer Credit in U.S. Rose $10.3 Billion in June, Fed Says
Aug. 7 (Bloomberg) -- Borrowing by U.S. consumers unexpectedly accelerated in June as credit card debt jumped, a Federal Reserve report showed today.
Consumer credit, or non-mortgage loans to individuals, rose $10.3 billion, or 5.7 percent at an annual rate, to $2.19 trillion, the Fed said in Washington. In May, consumer debt increased by a revised $5.89 billion.
Americans are making greater use of their credit cards to finance purchases because rising interest rates and a cooling housing market make it harder for them to take out home-equity loans.
http://www.bloomberg.com/apps....hntzty4 |
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Publius2006
Joined: 27 Jul 2006
Posts: 75
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| Posted: Wed Aug 09, 2006 12:32 am Post subject: |
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Credit Card companies are some of the most lucrative ventures out there. Very indicative of America's marginal propensity to consume.
Maybe I should start a credit card company. :) |
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ubikk
Joined: 27 Jul 2006
Posts: 2303
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| Posted: Wed Aug 09, 2006 12:20 pm Post subject: |
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Publius2006 wrote: Credit Card companies are some of the most lucrative ventures out there. Very indicative of America's marginal propensity to consume.
Maybe I should start a credit card company. :)
You could invest in the banks that are lending the money. They do need money to lend.
The scary part of the article was where they said that people were increasing credit card usage because they'd run out of equity in their houses. That sounds pretty bad to me.
What do you think? |
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John Galt
Joined: 04 May 2004
Posts: 21649
Location: Minnesota
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| Posted: Wed Aug 09, 2006 12:48 pm Post subject: |
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| It is pretty terrible to live in debt to others this way. But we NEED HDTV. |
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ubikk
Joined: 27 Jul 2006
Posts: 2303
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| Posted: Wed Aug 09, 2006 12:54 pm Post subject: |
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John Galt wrote: It is pretty terrible to live in debt to others this way. But we NEED HDTV.
True! If the masses are pre-occupied in front of the tube watching "Desparate Houswives" and NASCAR, they won't bother their elected officials. |
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Gus
Joined: 17 Jun 2005
Posts: 7609
Location: Tampa, FL
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| Posted: Wed Aug 09, 2006 1:28 pm Post subject: |
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| My credit card debt went up mostly due to the jump in gas prices. This may not be true for everyone else, but I know it certainly plays a factor...the demand for gas is pretty inelastic... |
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Free Thinkr
Joined: 27 Jul 2004
Posts: 12876
Location: Northwest Indiana
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| Posted: Wed Aug 09, 2006 1:40 pm Post subject: |
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Gus wrote: the demand for gas is pretty inelastic...
Yeah it is. :x
I was actually thinking about this yesterday; I have 2 more years till I pay off my car, and when that happens, I'm going to be looking long and hard at diesels. |
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LeopardPM
Joined: 20 Oct 2005
Posts: 1226
Location: Arizona
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| Posted: Wed Aug 09, 2006 2:50 pm Post subject: |
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Free Thinkr wrote: Gus wrote: the demand for gas is pretty inelastic...
Yeah it is. :x
I was actually thinking about this yesterday; I have 2 more years till I pay off my car, and when that happens, I'm going to be looking long and hard at diesels.
look longer and harder at living closer to work, riding a bicycle, and/or converting to an electric/hybird vehicle. My wife works about 3 miles away from home which puts her in perfect position for using an alternative energy vehicle (pure electric/battery) - shoot, she could drive a golf cart back and forth easily - proven technology, mass produced and 'cheap'... the savings in gas every month would pay for the loan to purchase the vehicle!
Diesels are not so great in the stop and go/short trip city driving as far as gas mileage... plus they are stinky and you need to remember to wear a glove when refueling - the stuff never comes off your hands! My father had one 20 years ago and it was a dog - probably improved some since then, but I doubt all the problems have been addressed. Plus, the price diff between diesel and gas is negligable. Just my thoughts |
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Free Thinkr
Joined: 27 Jul 2004
Posts: 12876
Location: Northwest Indiana
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| Posted: Wed Aug 09, 2006 4:12 pm Post subject: |
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LeopardPM wrote: Free Thinkr wrote: Gus wrote: the demand for gas is pretty inelastic...
Yeah it is. :x
I was actually thinking about this yesterday; I have 2 more years till I pay off my car, and when that happens, I'm going to be looking long and hard at diesels.
look longer and harder at living closer to work, riding a bicycle, and/or converting to an electric/hybird vehicle. My wife works about 3 miles away from home which puts her in perfect position for using an alternative energy vehicle (pure electric/battery) - shoot, she could drive a golf cart back and forth easily - proven technology, mass produced and 'cheap'... the savings in gas every month would pay for the loan to purchase the vehicle!
That's a good point; the house I currently rent is 6 miles from work. I will likely be moving within the year, so hopefully I will be able to find a place here in town and save some money there.
Quote: Diesels are not so great in the stop and go/short trip city driving as far as gas mileage... plus they are stinky and you need to remember to wear a glove when refueling - the stuff never comes off your hands! My father had one 20 years ago and it was a dog - probably improved some since then, but I doubt all the problems have been addressed. Plus, the price diff between diesel and gas is negligable. Just my thoughts
Oh, the price for diesel is actually a little more than gas; it's the mileage that saves money. PoweRob has one I believe; according to him it really sips the diesel. Also, I've been noticing some of these of late, including a Liberty diesel I saw on Monday, and they didn't seem excessively loud or dirty.
I think biodiesel has a ton of potential (and it would have much more if our retarded government would lift its ban on industrial hemp :x).
ETA: I just checked the Volkswagon website, and here are the diesel mileage and I-5 mileage comparisons:
Diesel: 100hp, 37city, 44highway
I-5: 150hp, 22city, 31highway
Much better overall, but in particular in the city. |
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ubikk
Joined: 27 Jul 2006
Posts: 2303
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| Posted: Wed Aug 09, 2006 5:59 pm Post subject: |
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Free Thinkr wrote:
I was actually thinking about this yesterday; I have 2 more years till I pay off my car, and when that happens, I'm going to be looking long and hard at diesels.
Wait another year for the Smart Car. http://www.smartusa.com/
I've already registered with them. I'm going to be one of the first people to get one. |
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