from Yahoo! Finance's business headline right now, the first sentences in the story:
"Consumer-credit delinquencies are on the rise again, but that doesn't mean the consumer credit picture is worsening."
To jm_dvdnsn's point the other day how there is so little truth in our society and culture today. Even simple things get lied about and spun. Maybe there is some creative way of concluding that worsening consumer credit repayment = improving consumer credit environment, but I'm not smart enough to figure it out.
I tried some other posts this morning, all of which were blocked.
And my thoughts earlier today when I saw the article were, do you suppose large cap banks are going to forecast this years earnings based upon credit card use increase? Rising default credit card use?
We need the new Robin Hood, Whitney Meredith to straight as an arrow this one, too.
Do you want me to repeat my driving trip from east to west and from west to east again? LOL No trucks for over 3 months and suddenly TRUCKS GALORE!!!! Boy the CNBC and Bloomberg EXPERTS sure proved to be PERTS know it all with their doom and gloom. The recovery continues in disbelief, still.
No need to repeat your road trip story with the trucks gone then back observation... LOL. But thanks.
Seriously, I believe the economy is slowly recovering. However, the recent crisis has left quite a lot of formerly middle class people now hurting and probably permanently underemployed. People are definitely comfortable spending again. New credit card solicitations abound.
However, I have come to regard the economy as an ocean. At the surface, there is no question that the activity is back. Lifeguards, kids swimming, surfers and jetskis. Parasailers in California. Pleasure crafts with collers filled with beer everywhere. BUT, to complete the metaphor, I also believe the schisms on the seafloor are wider and the tension is rising.
Sure, the water's fine. Until it isn't. Like the footage of the tsunami washing away everything including gawkers on the beach in South Eastern Asia in 2004.
The Fed IS bailing out everyone, inlcuding the ECB, as the Fed disclosures showed. It can't last and I assert that it won't last, which is exactly why they are fighting so desperately.
Back in early 2007, I noticed my credit card monthly payments were rallying, despite me paying double and triple down monthly in some cases. I thought this was odd and figured many others in America was experiencing the same but they were prolly more mad and distrustful of the banks than they were worrying about credit card securitization bond holders were slowly forcing calling of debt. I recall going to buy some cabinets with American Express and had always pay the bills on time and in full each month. Yet on this occasion, AXP refused the purchase and when contacted on the phone, they allowed the purchase but took the money out of my bank account the next day. I clearly knew something was up. It wasn't that people were being asked to pay the same, their monthly payments were rallying and bond holders were being squeezed themselves and calling the loans in full. If I could see that and call for deflation back in 2007, I wonder how smarter people missed it. Now they are calling for deflation when they were calling for inflation during a recession back in 2008 when oil rallied to over $147 and riots were blazing in emerging market countries when CNBC said they made about $3 per day and they spent some 80% on food while the USA spent 10%.
The double speak sounds more like a hedge against going all out for economic recovery. Less than 2 years ago, the word on every expert's beak was that nothing would work, not this or that. Here we are and everbody claims what a sham this is. Another 6 to 9 months, these very people will act as if they were expecting some sort of economic recovery after all. These people will always trail coincidence, thinking lags are real time facts.
When the question was whether to let Lehman fail or not, everybody said let it fail. After the fact, they said the fed was irresponsible. Let GM go belly up free willy and the government lead a controlled bankruptcy. they said it wouldn't work for sure cause government never did anything right. Let this fail and that fail but they never thought that a $100,000 FDIC insurance wouldn't cover anything over $100,000. SIPC brokerage insurance of $500,000, would cover anything over $500,000. And even the SIPC limit of $500Gs, wasn't guranteed for individual accounts considering the bankrupt broker would latch onto that 1st and that bond holders get first dibbs.