AUSTERITY?

It seems the MSM keeps being tripped up by their consumer austerity storyline. If consumers are cutting back and paying down debt, how could delinquencies on consumer debt be going up across the board? They can’t. You are either paying down debt or you are not paying down debt. Not only are consumers not paying down debt, they aren’t even making the payments on the debt they owe. Consumer debt is increasing. The people who have fallen off the unemployment rolls are now using their credit cards to survive. One little problem. They don’t have any income to pay off the credit cards. You can see how brilliant the Wall Street bank CEOs have been in reducing their loan loss reserves to pump up their earnings. I may be wrong but delinquencies might just lead to write-offs.

I look forward to the MSM spin.

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