Replies to post #14303 on The Rising Influence of Rising Affluence

[DewDiligence]

I find it surprising that consumer debt just reached $12.7T.

You would have thought it was higher?

[wow_happens28]

Student loans are like the new kid on the block in the debt. Two links below show charts of student loans up 4 to 6 fold since 2008. This now has a delayed affect. College grads don't get a nice new job and buy a house immediately. They need some savings for a down payment. So, the new grads in the past say 6 years will have many that will not qualify for a new home with outstanding debt. Thus housing starts and some auto loans will be rejected and housing starts slump, leading to all sectors in the economy slowing.

I believe student loans increasing is the result of two factors.
1. Parents don't have the excess money they used to have as family income is falling.
2. Kids can't get good jobs, so they are encouraged to go to college to get a better job, jobs that are disappearing.

https://www.bloomberg.com/view/articles/2015-04-17/washington-may-not-want-to-get-out-of-student-debt

http://www.zerohedge.com/news/2017-02-02/america%E2%80%99s-student-debt-problem-much-bigger-anybody-realized

I believe a cashless society will become an easy sell as deficits grow. The underground economy in the US has got to be huge, filled with many small and massive tax cheats. Freedoms lost, but an easy sell in bad times.

http://www.investopedia.com/articles/markets/032916/how-big-underground-economy-america.asp

I believe I posted here about India trying to go cashless, and even biometric by 2020(fat chance that soon). But cashless is being staged in by many countries in Europe and Asia, all setting the stage and a trial for the world, US included?>>>>

http://theeconomiccollapseblog.com/archives/the-globalists-strike-back-with-a-major-push-toward-a-cashless-society

[winchem21]

US household net worth has been rising ~7-8% annually for a number of years
http://www.zerohedge.com/news/2016-09-16/household-net-worth-hits-record-89-trillion-there-just-one-catch

Fed's Z.1 release provides balance sheets for sectors of the U.S. economy. One key one is Table B.101, "Balance sheet of households and non-profit organizations".

In 3Q2015, the top line of the US household sector stood just under $100 trillion
• Household sector net worth was ~$85 trillion
• ~$15 trillion in household sector debts.
• U.S. household sector net worth was 34% of the worldwide total.

Assets
• $30.6 trillion in non-financial assets - $25 trillion in real estate, $5 trillion in "consumer durables", mostly cars
• Deposits were $10.4 trillion, only 10% of overall assets.
• Biggest equity line items were $20.64 trillion in pension fund entitlements,
• Directly owned stock was $12.7 trillion; mutual fund shares add $7.9 trillion.
• Small business equity adds $10 trillion in wealth,
Note: Equity assets are ~twice value of real estate which is ~twice value of deposits

Liabilities
- $14.386 trillion in debts, with 2/3rd in home mortgages - $9.46 trillion

Consumer Debt
- Auto loans outstanding at $1.071 trillion as of the end of the 2Q2016
- Student loans are up to a level of $1.364 trillion
- Revolving credit (primarily credit cards) $975 billion