Deadbeat Nation: A Shocking 77 Million Americans Face Debt Collectors

Did somebody say the economy can go on forever like this? I think Hipster says that. We’ll see. Debt has been a stopgap since the 1970’s, when wages stopped increasing but inflation did not stop. What gets me is that people were like the boiled frog. THey just “put it on the card” and went along like before, rather than saying, “Wait, what? I have to scale down my spending rather than get in debt.” If everyone had scaled down their spending, it would have stopped inflation in its tracks, because hot money would be chasing someone to borrow it, money becomes worth more relative to goods.

saboteur365

Click to enlarge; based on population distributions by race and ethnicity I would say that blacks and Hispanics have problems managing their money Click to enlarge; based on population distributions by race and ethnicity I would say that blacks and Hispanics have problems managing their money

Zerohedge

We have been warning for years that as a result of the Fed’s disastrous policies, America’s middle class is being disintegrated and US adults are surviving only thanks to insurmountable debtloads. But not even we had an appreciation of how serious the problem truly was. We now know, and it is a shocker: according to new research by the Urban Institute, about 77 million Americans have a debt in collections.

In 12 states, including the District of Columbia, more than 40 percent of residents with a credit file have a bill in collections. That includes Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, New Mexico, North Carolina, South Carolina, Texas, and West Virginia.

With incomes lagging and poor impulse control among nonwhites, their debts will rise…

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6 Responses to Deadbeat Nation: A Shocking 77 Million Americans Face Debt Collectors

  1. Ryu says:

    I’ll say that consumer debt doesn’t matter.

    The USG was willing to throw 85 billion at the stock market each month for years. Probably more. Consumer debt is less than government debt. In fact, consumber debt helps the USG, because most feel that they have to pay.

    No economic number today has any relevence. They are all cooked up, and defined to suit a purpose. Best to study the human moves behind it.

    • Anon says:

      Trust is fundamentally what matters. when that breaks the whole thing goes, but conversely they can run debt forever as long as people trust.

      • mindweapon says:

        Trust cannot make oil wells produce more oil, or farms produce more food. When commodities are scarce and expensive, trust will be lost.

  2. robertpinkerton says:

    Fifty-five years ago, when I was fifteen, an aunt began complaining at a family kaffeeklatsch about the paperwork she had to do when one of her boss’ employees got garnisheed. When I asked her what that means, she told me. I was astounded that people did not kill themselves for the shame of that.

    In the same year, I read (in a source whose identity I have forgotten) that, out of the world’s current slave population (This was 1959.), of those not born to slave status, eighty percent of those freeborn slaves fell slave because of indebtedness!

    One effect of that learning was to instill an intransigent determination to pay only cash: If I did not have the cash to pay for something, ipso facto I could not afford it. As a result of that attitude, in all my seventy years I have never incurred obligation to pay out even so little as a penny of money-rental that we are mistaught into calling interest. Consumer credit at each, all, and every level should be loudly and blatantly stigmatized as Slave-taker’s Bait.

    I acknowledge without shame that I hate the very institution of consumer credit: and I advise the reader to interpolate into that the hottest (as in GRU furnace), hardest, heaviest definition of hatred the $PLC or $earchlight can supply. I love that hatred as a stimulus to virtue.

    If someone who puts up a rich front on credit, gets garnisheed and repossessed, it should be permissible to laugh at his pain: He shat his bed, not let him lose sleep in it.

  3. I didn’t say “forever” but I did say it could likely outlast us and our generation. The old adage says, “the market can stay irrational longer than you can stay solvent.” I’ve lived through four major financial crises and in each one the doomers said “this is it, we’ll be resorting to cannibalism” any day now. Then things went back to normal.

    If the rest of the world dumps the dollar, imports will go sky high, Walmart will be half empty, but it still won’t be the Zombie Apocalypse.

    Doomerism paralyses people. Instead of building for the future, you hole up in your bunker, or prepare to sell freeze dried food to the starving masses. If the Final Collapse is coming – why learn calculus? Why open an All-American Convenience Store? Why coach Little League baseball since the kids will all be farmhands – the ones that don’t starve to death that is?

    It reminds me of the Rapture Cults. All the sins of the earth (mudsharking) will be cleansed by God as He pours out his wrath on the evil sinners, and the Righteous will gloat in their punishments.

    I even got Bible for that.

    Because I have called, and ye refused; I have stretched out my hand, and no man regarded; But ye have set at nought all my counsel, and would none of my reproof: I also will laugh at your calamity; I will mock when your fear cometh; When your fear cometh as desolation, and your destruction cometh as a whirlwind; when distress and anguish cometh upon you. Then shall they call upon me, but I will not answer; they shall seek me early, but they shall not find me. — Proverbs 1:24-28

    Nothing new under the sun. Doomerism is as old as the first natural disaster.

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