Debt jumps to 12 year high!!! Dumb consumers just keep consuming !!

[S2007S]

House hold debt now at a 12 year high, looks like consumers will stop at nothing to put a little away for a rainy day..just keep spending those dollars that you dont have...debt increased $600+ billion to $14 trillion, first time debt has ever passed this amount, endless highs in equities equals all time high household debt. Isnt it pathetic how debt ridden this world is, nothing but debt, government debt consumer debt, corporate debt...debt debt and more debt. Hey maybe one of these new candidates running for president will not only forgive student loan debt but maybe every other debt owed as well. We can wash away trillions and trillions of debt and then go out and buy more garbage, rinse and repeat. Keep spending those dollars you don't have because how else can we keep propelling the markets to new highs....keep spending fools.


https://www.cnbc.com/2020/02/11/hou...-in-12-years-federal-reserve-report-says.html

 

[nooby_mcnoob]

Here's the trick: debt is always at an all time high.

 

[El OchoCinco]

As long as I can afford shit, I'm a gonna buy shit

 

[danielc1]

Money = debt, so if there is more money there is more debt. Some day they are going to reset, to start all over again.

 

[easymon1]

Some day they are going to reset, to start all over again.

how would something like that work, nuts-and-bolts-wise?

-
"...So sing your song and sip your champagne
Dance a dance with Diamond Lil
You don't have to pay the piper
Just have him put it on the bill

A man should never gamble
A man should never gamble
A man should never gamble
More than he can stand to lose
More than he can stand to lose
More than he can lose"
David Brombergiamond Lil Lyrics

 

[danielc1]

how would something like that work, nuts-and-bolts-wise?

You need a catalyst that the people will buy in to. In history it was war, hyperinflation or a new standard for existing money.

 

[lindq]

House hold debt now at a 12 year high, looks like consumers will stop at nothing to put a little away for a rainy day..just keep spending those dollars that you dont have...debt increased $600+ billion to $14 trillion, first time debt has ever passed this amount, endless highs in equities equals all time high household debt. Isnt it pathetic how debt ridden this world is, nothing but debt, government debt consumer debt, corporate debt...debt debt and more debt. Hey maybe one of these new candidates running for president will not only forgive student loan debt but maybe every other debt owed as well. We can wash away trillions and trillions of debt and then go out and buy more garbage, rinse and repeat. Keep spending those dollars you don't have because how else can we keep propelling the markets to new highs....keep spending fools.


https://www.cnbc.com/2020/02/11/hou...-in-12-years-federal-reserve-report-says.html

If you would have bothered to read beyond the headline, you would have seen this subhead:

>> The level of household debt service as a percentage of disposable personal income is at all-time lows going back to 1980.

 

[athlonmank8]

If you would have bothered to read beyond the headline, you would have seen this subhead:

>> The level of household debt service as a percentage of disposable personal income is at all-time lows going back to 1980.

Yeah I thought i had read that wrong

 

[Nine_Ender]

If you would have bothered to read beyond the headline, you would have seen this subhead:

>> The level of household debt service as a percentage of disposable personal income is at all-time lows going back to 1980.

Sounds about right. Taking on new debt is smart when one has investment opportunities that pay better then what the debt costs. For example, buying a decent house in a good market versus renting. Given what you quoted, it sounds like debt is lower then might be warranted if people trusted in the stock market and real estate. The fear factor remains very real out there; many people have been expecting the rug to be pulled out from beneath them for years now. Anyone who reduced US stock market exposure in 2015/2016 when the first rate hike went through and we had a correction is regretting that decision now.

 

[Seaweed]

If you would have bothered to read beyond the headline, you would have seen this subhead:

>> The level of household debt service as a percentage of disposable personal income is at all-time lows going back to 1980.

That could be a bad thing. It might mean they don't have enough money to pay more. Most people would like to pay off their debts but they simply can't. If you see a stat that says people are spending more of their income on food, do you assume they are eating better and healthier since the assumption is it costs more for organic food?