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This headline is too positive by implying that Americans are choosing to save. Rather, they are hitting the wall. The gains here are overwhelmingly from defau
by OstiaAntica 16y ago
This headline is too positive by implying that Americans are choosing to save. Rather, they are hitting the wall. The gains here are overwhelmingly from defaulting on mortgages. Also the credit card companies have withdrawn $1 trillion in credit lines, so people can't pay cards with other cards any longer.
- yummyfajitas 16y agoAmericans are choosing to pay off their debt. They have paid off $90B so far. You are correct that $118B of the $208B drop is caused by lenders writing off bad debt. Of course, the elephant in the room is that total debt went up by $1.6 trillion - corporate debt increased 5.4%, govt debt increased 20%. By the way, did anyone notice how crazy the financials of some of the people being interviewed are? The saleswoman had debt payments of $6500/month. Assuming she previously spent 50% of her take home pay on debt service, she was taking home about $13k/month. Yet somehow, she accumulated $500k in debt, and blew through her entire retirement savings in about 1.5 years. I have no idea how it is even possible to be that irresponsible.
- xenophanes 16y agoReally? I still get plenty of junk mail trying to get me to pay me other debt with them, interest free for 6 months.