Consumer credit picture shows a few bright spots

  • Article by: JENNIFER BJORHUS , Star Tribune
  • Updated: April 11, 2012 - 9:28 PM

But many borrowers are making strategic decisions to default on mortgages while paying off cars and credit cards.

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ciamanApr. 12, 1212:56 PM

I note that this is not a report from the A/P nor the UPI. This comes from the Star/Tribune. One could read this article almost however you would like to see what it says. Spin it? 1. Just whom has been buying all of the new cars? Exactly whom has the cash to do that? Or to make payments for seven years? Yet the article also says that consumers are expected not to stay in debt? How does that square? 2. Low paying jobs are the norm out there these days. How can people stay out of debt with low paying jobs? Another enigma issue. 3. A home is no longer considered the most important credit obligation? No wonder the bankers do not want to loan out mortgages. And that is the view of the new home owners?? Wonderful. Just walk away from it if things go sour. And 4. The Baby Boomers are retiring in droves. And as far as the eye can see, this will continue. And those people are also applying for medicare and their income is dropping. Hello? Anyone see what that means? 5. Lower income. That is the factor. And if you retire and have less money, guess what? People will spend less. Yes, that is true. Less. And how does that square with any liberal ideas?? Come 01/01/2013, watch out. So many finance things are coming to a head and the income of all people will take a big hit. Like the FICA tax, which was stolen in the last two years. Now they are coming due. The president can no longer keep it low. And many other thins, like the increase in taxes. That also means less income. Shall I go on? No? Due to limitations on space, I do stop now. But really think about it.

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swatisedApr. 12, 12 1:37 PM

ciaman - (1) people buy cars - robots have built in wheels (2) don't buy stuff on credit (3) shelter is less critical than life. (4)boomers won't find doctors or hospitals they can afford and won't live very well. See #3 (5) Duh ... have less, spend less. have more , spend more. that is exactly the liberal ethic - and that is why they want to tax more - to spend more. Concervatives are the ones who cut taxes ( therefore HAVE LESS) and then still spend more .. and there in lies the problem. Governments problem is an inability to correctly match revenues to expenditures. Concervatives screwed it up - because in a "run like a business" model ... you take out a loan .. and if it doesn't work you go bankrupt. They think bankrupting America is a good thing. The fiscal experts from Reagan, GHWBush, GWBush all will freely admit - tax cuts alone are stupid.

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