Bankruptcies rising. Fed answer? More debt.

[Toddsterpatriot]

So the news out today is that bankruptcies are on the rise. Debt is getting out of control once again.

https://nypost.com/2019/08/11/bankruptcy-filings-rising-across-the-country-and-it-could-get-worse/

Then we read that the Fed is considering that the solution to debt getting out of control is loosening banks ability to create more debt.

Now, some Fed officials are debating whether it is time to use the tool, which could provide banks with additional lending firepower in a subsequent downturn. It isn’t clear when they might make a decision.

Fed Considers New Tool for a Downturn

Meanwhile, record American household debt, near $14 trillion including mortgages and student loans, is some $1 trillion higher than during the Great Recession of 2008. Credit card debt of $1 trillion also exceeds the 2008 peak.

Real GDP is 20% higher than it was before the start of the recession.

"Real" GDP is not. GDP counts the money the government creates out of nothing and is not "real". We are still overloaded with that.

GDP counts the money the government creates out of nothing and is not "real".

You'll have to explain where this fits into the GDP calculation.

 

[Andylusion]

I think the real answer is to teach people to not borrow money.

How do ordinary people go to college or buy a decent car/house without taking loans from the bank?

I went to college without a loan. It's called "working". I bought a decent car without a loan.

I'm always baffled by this line of thinking.

First, let's deal with the car.

If you can afford a car payment.... then you can afford to put money into an account each month, and save up to buy a car.
I'm always baffled by this "We can't save up money to buy a car!".... really? But you can afford $500 a month car payment? Put $500 in a the bank each month, and in a year or two, you'll have the money to buy a new car.

And here's the bonus... if you lose your job, you don't have to freak out that they are going to repo the car.

Second, college.

The guy in the desk across from me, is going to school on grants. Full ride. How did he get it? He applied for it.

There are tens of thousands of grants and aid programs for people. Apply for as many as you can. Some years back had a co-worker named James. His parents were broke, and he didn't want to go to school on loans. He just went to school one or two courses a quarter, and worked a job. He applied for every aid or grant he could. One of the grants he got was for "Students from Columbia" which is where he was from. With all the grants and aid he got, it was barely $1,000 a quarter, and he was going to Capital University, a private and expensive school.

He just worked a job, and paid the tuition.

If you go to Columbus State, they estimate that the cost is $3,800 a year, tuition and fees. That's BEFORE aid or grants you can get. And that assumes going full time, which you don't need to do.

So let me ask you, can you work a job and save up $300 a month? Yes, I think you can. I saved up $300 a month, when I was working at Wendy's for minimum wage back in the day.

The problem is not that education is too expensive. The problem is that people want to go to the party school, don't want to work, don't want to study hard, and get their SAT / ACT scores up so they qualify for merit based support, don't want to fill out the endless forms applying for all those grants, don't want to live at home while they go to school, they want to be part of the fraternity and sorority, and live in the dorms. And they don't want to go to the affordable schools that simply have what you need for an education, but rather all the 'party schools', which is why you have top party school lists that come out every year.

2019 Top Party Schools in America

Yeah you go party your life away, and then complain school is expensive. How about you work a job, work on your scores to get merit based aid, and stop blowing all your money on parties.

Until then, no sympathy.

Now as for the house thing.... we have a tested and proven system that works. It's called the prime rate mortgage. You save up money for 20% down on a house, and buy that house on a 15-year, or 30-year mortgage. And you buy a house that costs LESS than what you can afford.

If you do that, you will not default.

These zero-down mortgages, and the variable rate loans, that violate the prime rate system, those are where the defaults are.

However, I still stand by what I said. Better to save up, and buy a house. And yes, you can save up and buy a house. If you can pay $1,000 a month mortgage, then you can save $1,000 a month.

I had a roommate from Bangladesh. He was making $90,000 a year, when he rented my basement room. I had everyone telling me, why would a guy making $90K a year, need to rent a basement room?

He didn't. He made the choice to live modestly, and save the money. He said openly, he was banking all the cash, so he could buy a house without a mortgage. Recently he landed a job in another state, for $120,000 a year, and this was after his wife came here to the US, to join him. They recently had a child.

So I asked him, so now are you going to buy a house? Because I'm thinking he's got a wife, and child now, so he obviously needs a house. No, he is going to rent a cheap condo or townhouse, until he has the money to buy a house without a mortgage.

You can buy a house, without payments. It means sacrifice and commitment. It means delaying pleasure today, for greater pleasure tomorrow.

A rough guesstimation, based on the numbers he gave me, and how little his rent was (I only charged him $400 a month), and how much his cheap rental in Chicago is... I was wager that between 12 and 24 months from now, this immigrant with a wife and child, will be buying a home free and clear... and he's not even 30 years old yet.

And by the way, his car was a used Kia, about 5 years old. No payment. Purchased with cash. Keep in mind he bought it after landing his $120K job. An American would be getting a sports car or SUV, bran new. Not this guy, because he wants to be wealthy. So he bought a used car, with cash.

So yes, you can live debt free. I deny anyone claiming otherwise. My parents are debt free. I've been debt free for 10 years. It is the better way to live.

 

[SAYIT]

So the news out today is that bankruptcies are on the rise. Debt is getting out of control once again.

https://nypost.com/2019/08/11/bankruptcy-filings-rising-across-the-country-and-it-could-get-worse/

Then we read that the Fed is considering that the solution to debt getting out of control is loosening banks ability to create more debt.

Now, some Fed officials are debating whether it is time to use the tool, which could provide banks with additional lending firepower in a subsequent downturn. It isn’t clear when they might make a decision.

Fed Considers New Tool for a Downturn

Easy fix, don't spend more than you make.

So let's raise interest rates. How about it? Easy money makes for easy debt.

Sure, give you libs something else to piss and moan about.

And when higher rates cause the economy to slow and jobs to be lost our Pknopps will whine about that. The Fed's job is to regulate the money supply to keep growth ahead of inflation. They seem to be doing pretty well.

Lefties NEVER consider even the most likely results of the economic policies they promote because they don't understand economics.

 

[Toddsterpatriot]

So the news out today is that bankruptcies are on the rise. Debt is getting out of control once again.

https://nypost.com/2019/08/11/bankruptcy-filings-rising-across-the-country-and-it-could-get-worse/

Then we read that the Fed is considering that the solution to debt getting out of control is loosening banks ability to create more debt.

Now, some Fed officials are debating whether it is time to use the tool, which could provide banks with additional lending firepower in a subsequent downturn. It isn’t clear when they might make a decision.

Fed Considers New Tool for a Downturn

Easy fix, don't spend more than you make.

So let's raise interest rates. How about it? Easy money makes for easy debt.

Sure, give you libs something else to piss and moan about.

And when higher rates cause the economy to slow and jobs to be lost our Pknopps will whine about that. The Fed's job is to regulate the money supply to keep growth ahead of inflation. They seem to be doing pretty well.

Lefties NEVER consider even the most likely results of the economic policies they promote because they don't understand economics.

Lefties NEVER consider even the most likely results of the economic policies they promote because they don't understand economics.

Truer words were never spoken.

 

[pknopp]

So the news out today is that bankruptcies are on the rise. Debt is getting out of control once again.

https://nypost.com/2019/08/11/bankruptcy-filings-rising-across-the-country-and-it-could-get-worse/

Then we read that the Fed is considering that the solution to debt getting out of control is loosening banks ability to create more debt.

Now, some Fed officials are debating whether it is time to use the tool, which could provide banks with additional lending firepower in a subsequent downturn. It isn’t clear when they might make a decision.

Fed Considers New Tool for a Downturn

Easy fix, don't spend more than you make.

So let's raise interest rates. How about it? Easy money makes for easy debt.

Sure, give you libs something else to piss and moan about.

And when higher rates cause the economy to slow and jobs to be lost our Pknopps will whine about that. The Fed's job is to regulate the money supply to keep growth ahead of inflation. They seem to be doing pretty well.

Lefties NEVER consider even the most likely results of the economic policies they promote because they don't understand economics.

Here we go again.........I'm pro-life. I fully support the 2nd Amendment. I believe we need a balanced budget amendment. I am against the Socialism of the Federal Reserve. I fully understand the ramifications of not making money "free".

What makes me a leftist?

 

[pknopp]

So the news out today is that bankruptcies are on the rise. Debt is getting out of control once again.

https://nypost.com/2019/08/11/bankruptcy-filings-rising-across-the-country-and-it-could-get-worse/

Then we read that the Fed is considering that the solution to debt getting out of control is loosening banks ability to create more debt.

Now, some Fed officials are debating whether it is time to use the tool, which could provide banks with additional lending firepower in a subsequent downturn. It isn’t clear when they might make a decision.

Fed Considers New Tool for a Downturn

Easy fix, don't spend more than you make.

So let's raise interest rates. How about it? Easy money makes for easy debt.

Sure, give you libs something else to piss and moan about.

And when higher rates cause the economy to slow and jobs to be lost our Pknopps will whine about that. The Fed's job is to regulate the money supply to keep growth ahead of inflation. They seem to be doing pretty well.

Lefties NEVER consider even the most likely results of the economic policies they promote because they don't understand economics.

Lefties NEVER consider even the most likely results of the economic policies they promote because they don't understand economics.

Truer words were never spoken.

Hypocritical "righties" love the Socialist programs of the Fed when they see it benefiting them.

 

[Indeependent]

So the news out today is that bankruptcies are on the rise. Debt is getting out of control once again.

https://nypost.com/2019/08/11/bankruptcy-filings-rising-across-the-country-and-it-could-get-worse/

Then we read that the Fed is considering that the solution to debt getting out of control is loosening banks ability to create more debt.

Now, some Fed officials are debating whether it is time to use the tool, which could provide banks with additional lending firepower in a subsequent downturn. It isn’t clear when they might make a decision.

Fed Considers New Tool for a Downturn

Easy fix, don't spend more than you make.

So let's raise interest rates. How about it? Easy money makes for easy debt.

Sure, give you libs something else to piss and moan about.

And when higher rates cause the economy to slow and jobs to be lost our Pknopps will whine about that. The Fed's job is to regulate the money supply to keep growth ahead of inflation. They seem to be doing pretty well.

Lefties NEVER consider even the most likely results of the economic policies they promote because they don't understand economics.

Lefties NEVER consider even the most likely results of the economic policies they promote because they don't understand economics.

Truer words were never spoken.

pk is concerned his portfolio will be adversely affected by a crash.

 

[Toddsterpatriot]

Easy fix, don't spend more than you make.

So let's raise interest rates. How about it? Easy money makes for easy debt.

Sure, give you libs something else to piss and moan about.

And when higher rates cause the economy to slow and jobs to be lost our Pknopps will whine about that. The Fed's job is to regulate the money supply to keep growth ahead of inflation. They seem to be doing pretty well.

Lefties NEVER consider even the most likely results of the economic policies they promote because they don't understand economics.

Lefties NEVER consider even the most likely results of the economic policies they promote because they don't understand economics.

Truer words were never spoken.

Hypocritical "righties" love the Socialist programs of the Fed when they see it benefiting them.

I enjoy it when the Fed is the lender of last resort.

 

[Toddsterpatriot]

So the news out today is that bankruptcies are on the rise. Debt is getting out of control once again.

https://nypost.com/2019/08/11/bankruptcy-filings-rising-across-the-country-and-it-could-get-worse/

Then we read that the Fed is considering that the solution to debt getting out of control is loosening banks ability to create more debt.

Now, some Fed officials are debating whether it is time to use the tool, which could provide banks with additional lending firepower in a subsequent downturn. It isn’t clear when they might make a decision.

Fed Considers New Tool for a Downturn

Easy fix, don't spend more than you make.

So let's raise interest rates. How about it? Easy money makes for easy debt.

Sure, give you libs something else to piss and moan about.

And when higher rates cause the economy to slow and jobs to be lost our Pknopps will whine about that. The Fed's job is to regulate the money supply to keep growth ahead of inflation. They seem to be doing pretty well.

Lefties NEVER consider even the most likely results of the economic policies they promote because they don't understand economics.

Here we go again.........I'm pro-life. I fully support the 2nd Amendment. I believe we need a balanced budget amendment. I am against the Socialism of the Federal Reserve. I fully understand the ramifications of not making money "free".

What makes me a leftist?

Was the Fed lending a lot of "free money" during the last 7 years of the Obama administration?

 

[pknopp]

Easy fix, don't spend more than you make.

So let's raise interest rates. How about it? Easy money makes for easy debt.

Sure, give you libs something else to piss and moan about.

And when higher rates cause the economy to slow and jobs to be lost our Pknopps will whine about that. The Fed's job is to regulate the money supply to keep growth ahead of inflation. They seem to be doing pretty well.

Lefties NEVER consider even the most likely results of the economic policies they promote because they don't understand economics.

Lefties NEVER consider even the most likely results of the economic policies they promote because they don't understand economics.

Truer words were never spoken.

pk is concerned his portfolio will be adversely affected by a crash.

I'm concerned that the taxpayers will be responsible for bailing out Wall Street again.

 

[pknopp]

Easy fix, don't spend more than you make.

So let's raise interest rates. How about it? Easy money makes for easy debt.

Sure, give you libs something else to piss and moan about.

And when higher rates cause the economy to slow and jobs to be lost our Pknopps will whine about that. The Fed's job is to regulate the money supply to keep growth ahead of inflation. They seem to be doing pretty well.

Lefties NEVER consider even the most likely results of the economic policies they promote because they don't understand economics.

Here we go again.........I'm pro-life. I fully support the 2nd Amendment. I believe we need a balanced budget amendment. I am against the Socialism of the Federal Reserve. I fully understand the ramifications of not making money "free".

What makes me a leftist?

Was the Fed lending a lot of "free money" during the last 7 years of the Obama administration?

Yes. And his economic policies sucked.

 

[Indeependent]

So let's raise interest rates. How about it? Easy money makes for easy debt.

Sure, give you libs something else to piss and moan about.

And when higher rates cause the economy to slow and jobs to be lost our Pknopps will whine about that. The Fed's job is to regulate the money supply to keep growth ahead of inflation. They seem to be doing pretty well.

Lefties NEVER consider even the most likely results of the economic policies they promote because they don't understand economics.

Lefties NEVER consider even the most likely results of the economic policies they promote because they don't understand economics.

Truer words were never spoken.

pk is concerned his portfolio will be adversely affected by a crash.

I'm concerned that the taxpayers will be responsible for bailing out Wall Street again.

Too Big To Fail...

 

[Toddsterpatriot]

So let's raise interest rates. How about it? Easy money makes for easy debt.

Sure, give you libs something else to piss and moan about.

And when higher rates cause the economy to slow and jobs to be lost our Pknopps will whine about that. The Fed's job is to regulate the money supply to keep growth ahead of inflation. They seem to be doing pretty well.

Lefties NEVER consider even the most likely results of the economic policies they promote because they don't understand economics.

Lefties NEVER consider even the most likely results of the economic policies they promote because they don't understand economics.

Truer words were never spoken.

pk is concerned his portfolio will be adversely affected by a crash.

I'm concerned that the taxpayers will be responsible for bailing out Wall Street again.

TARP loans to Wall Street were hugely profitable.

 

[pknopp]

Sure, give you libs something else to piss and moan about.

And when higher rates cause the economy to slow and jobs to be lost our Pknopps will whine about that. The Fed's job is to regulate the money supply to keep growth ahead of inflation. They seem to be doing pretty well.

Lefties NEVER consider even the most likely results of the economic policies they promote because they don't understand economics.

Lefties NEVER consider even the most likely results of the economic policies they promote because they don't understand economics.

Truer words were never spoken.

pk is concerned his portfolio will be adversely affected by a crash.

I'm concerned that the taxpayers will be responsible for bailing out Wall Street again.

Too Big To Fail...

Unfortunately. Another example where Obama failed.

 

[Toddsterpatriot]

So let's raise interest rates. How about it? Easy money makes for easy debt.

Sure, give you libs something else to piss and moan about.

And when higher rates cause the economy to slow and jobs to be lost our Pknopps will whine about that. The Fed's job is to regulate the money supply to keep growth ahead of inflation. They seem to be doing pretty well.

Lefties NEVER consider even the most likely results of the economic policies they promote because they don't understand economics.

Here we go again.........I'm pro-life. I fully support the 2nd Amendment. I believe we need a balanced budget amendment. I am against the Socialism of the Federal Reserve. I fully understand the ramifications of not making money "free".

What makes me a leftist?

Was the Fed lending a lot of "free money" during the last 7 years of the Obama administration?

Yes. And his economic policies sucked.

How much? At what point in time?

 

[Indeependent]

Are the inventories of current bankruptcies valuable to online retailers?

 

[pknopp]

Sure, give you libs something else to piss and moan about.

And when higher rates cause the economy to slow and jobs to be lost our Pknopps will whine about that. The Fed's job is to regulate the money supply to keep growth ahead of inflation. They seem to be doing pretty well.

Lefties NEVER consider even the most likely results of the economic policies they promote because they don't understand economics.

Lefties NEVER consider even the most likely results of the economic policies they promote because they don't understand economics.

Truer words were never spoken.

pk is concerned his portfolio will be adversely affected by a crash.

I'm concerned that the taxpayers will be responsible for bailing out Wall Street again.

TARP loans to Wall Street were hugely profitable.

No they weren't. You bought the lies. Tarp was paid back by other government programs like Harp.

Give Wall Street 5 billion. Tell them they have to pay it. Give them 5 billion more that they pay the first 5 billion with but there is no requirement to pay this money back.

That is what happened.

The “TARP is turning a profit” claim is hardly new. In the past, proponents have looked at the $211.5 billion repaid from the Capital Purchase Program (the first phase of TARP) on $204.9 billion loaned out and concluded that a nearly $7 billion profit was yielded. Mark Gongloff at the Huffington Post pointed out that the problem here isn’t inflation but the fact that nearly half of those funds were repaid with funds that come from loans from other government programs.

Overselling TARP: The Myth of the $15 Billion Profit | National Review

(to note, not a left leaning source)

 

[pknopp]

Sure, give you libs something else to piss and moan about.

And when higher rates cause the economy to slow and jobs to be lost our Pknopps will whine about that. The Fed's job is to regulate the money supply to keep growth ahead of inflation. They seem to be doing pretty well.

Lefties NEVER consider even the most likely results of the economic policies they promote because they don't understand economics.

Here we go again.........I'm pro-life. I fully support the 2nd Amendment. I believe we need a balanced budget amendment. I am against the Socialism of the Federal Reserve. I fully understand the ramifications of not making money "free".

What makes me a leftist?

Was the Fed lending a lot of "free money" during the last 7 years of the Obama administration?

Yes. And his economic policies sucked.

How much? At what point in time?

It does not matter "how much", yours is a typical diversion attempt because you have nothing else.

 

[Toddsterpatriot]

And when higher rates cause the economy to slow and jobs to be lost our Pknopps will whine about that. The Fed's job is to regulate the money supply to keep growth ahead of inflation. They seem to be doing pretty well.

Lefties NEVER consider even the most likely results of the economic policies they promote because they don't understand economics.

Lefties NEVER consider even the most likely results of the economic policies they promote because they don't understand economics.

Truer words were never spoken.

pk is concerned his portfolio will be adversely affected by a crash.

I'm concerned that the taxpayers will be responsible for bailing out Wall Street again.

TARP loans to Wall Street were hugely profitable.

No they weren't. You bought the lies. Tarp was paid back by other government programs like Harp.

Give Wall Street 5 billion. Tell them they have to pay it. Give them 5 billion more that they pay the first 5 billion with but there is no requirement to pay this money back.

That is what happened.

The “TARP is turning a profit” claim is hardly new. In the past, proponents have looked at the $211.5 billion repaid from the Capital Purchase Program (the first phase of TARP) on $204.9 billion loaned out and concluded that a nearly $7 billion profit was yielded. Mark Gongloff at the Huffington Post pointed out that the problem here isn’t inflation but the fact that nearly half of those funds were repaid with funds that come from loans from other government programs.

Overselling TARP: The Myth of the $15 Billion Profit | National Review

(to note, not a left leaning source)

No they weren't.

AIG...$5 billion.
BofA...$4.5 billion
Citigroup...$13.4 billion
JPMorgan...$1.7 billion
Wells Fargo...$2.2 billion
Goldman...$1.4 billion
Morgan Stanley...$1.2 billion

Etc. Etc. Etc.

 

[Toddsterpatriot]

And when higher rates cause the economy to slow and jobs to be lost our Pknopps will whine about that. The Fed's job is to regulate the money supply to keep growth ahead of inflation. They seem to be doing pretty well.

Lefties NEVER consider even the most likely results of the economic policies they promote because they don't understand economics.

Here we go again.........I'm pro-life. I fully support the 2nd Amendment. I believe we need a balanced budget amendment. I am against the Socialism of the Federal Reserve. I fully understand the ramifications of not making money "free".

What makes me a leftist?

Was the Fed lending a lot of "free money" during the last 7 years of the Obama administration?

Yes. And his economic policies sucked.

How much? At what point in time?

It does not matter "how much", yours is a typical diversion attempt because you have nothing else.

It does not matter "how much"

If the Fed is lending $4 trillion at 0.25%, that's a big deal, if they're lending $4 million...….meh.