Stop Coddling the Super-Rich

[Ail]

mrstickball said:

Ail said:

It is down 1 trillion ( down to 11.5 trillions from 12.5 trillions).

There's several reasons for this :

1- Foreclosure , the huge majority on the household debt is in mortgage, as people go in foreclosure their mortgage gets wiped out...

2- No more refinancing to get money out of your house ( which increases debt).

3- Stricter borrowing policies, it is actually very hard these days for people to get mortage approved or get loans if they have less than pristine credit score. As the majority of people keep paying their existing debt, and you reduce the capacity for people to take on new debt, overall debt goes down..

3- Some slight reduction in credit card debt ( like I said some americans took advantage of the latest stimulus to reduce their debt and are still doing this right now which is one reason for the weak economy, even if for the long term it is a good thing).

 

The reduction in credit card debt is good for the future.

The dificulty to get mortgage not so much because people still have to pay to have a roof over their head one way or another so that is not helping the economy..

Just curious, but how did the stimulus have an effect on credit card debt when no one in the general populace got money from the program? Why would this stimulus have effected said debt when every other stimulus pushed (twice under Bush) no one to pay down their debts?

I am talking of the last Obama stimulus.

Pretty much everyone in the general populace benefited from it as it cut 800$ from payroll withholding for families and 400$ for single person and it extended unemployment benefits for those without a job so if you are part of the working class in the US you did enjoy it.

I'm not saying it helped a lot reduce credit card debt.

What I'm saying is following the financial crisis many americans have started to try to reduce their debt and any stimulus is most likely going to be used that way by americans instead of being put toward spending more...

 

The first stimulus under Bush did not get used toward reducing debt as the movement to reduce debt hadn't really started in the general population.. It's really something that started around 2009. I'm not sure about the timing of the second but I think it actually was at the time when the debt was starting to reduce heavilly..

http://money.cnn.com/2011/08/15/news/economy/household_debt/