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| Consumer Credit: An Indicator Of A Top in forum [Market-Ticker]
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Matt_bear
Posts: 6357
Incept: 2008-07-15
a week early on spy puts
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GM was pushing 0% financing on all their vehicles last month....including corvette.
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In terms of real-world fundamentals, I expect that most of the people around me, whom I work with day to day, and whom I pass on the street ... will be dead within five years.
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Oldno7
Posts: 2138
Incept: 2008-11-14
RECALL STATE USA
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The price of gas has to be a factor in this I would think. I watch where our money is spent extremely close and now that my wife is also retired we will be having our first quarterly budget meeting next week. We have no debt and it's going to stay that way.
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IT'S THE SPENDING STUPID The US must become less a government of men, and more a government of LAW.
When people lose everything and have nothing left to lose they lose it -Gerald Celente
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Bertdilbert
Posts: 2661
Incept: 2008-12-22
CA
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Heh, thought you were taking the rest of the day off...
I think they all went out and turned in their old gas guzzlers and larded up on debt with more fuel efficient models.
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Dear Euroland: Relax, Germany has a plan for your money!
Political Capital Defined: We are out of money but will tax our citizens for whatever it takes to "SAVE" the Euro.
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Imustbenutz
Posts: 283
Incept: 2010-11-04
Absurdistan, USSA
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Credit Cards going from "declined" to "CONFISCATE"
Does WalMart LayAway count as "non-revolving" credit?
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Flappingeagle
Posts: 1227
Incept: 2011-04-14
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Karl everytime you make this post I get confused. Should I be able to match up the numbers in the passage you quote with the lines on your graph? I can't match them up whether I should be able to or not.
I hope I'm not seeming to be to dumb to ask for some explanation.
Flap
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Here are my predictions for everyone to see:
S&P 500 at 320, DOW at 2200, Gold $300/oz, and Corn $2/bu.
"You can't build a house of cards on a shaking table." - Tony Johns
The January 2015 AMZN put at $130 (cost $4.25) will be a winner.
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Bagbalm
Posts: 4259
Incept: 2009-03-19
Just North of Detroit
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Unless you are driving a LOT of miles with a real gas guzzler it is very hard to save enough on fuel to offset a car payment. Right now, for my wife's car, gas would have to be north of $8/gal. to make it immediately worthwhile to buy a new one.
The interest cost now are so low zero percent financing is really no big thrill.
You have to factor in not only the car payment but our insurance would be about $150 more a month for a new vehicle and the plates would cost more too.
We have about $30k owed on our condo and that is all the debt I intend to carry.
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Flaps10
Posts: 5165
Incept: 2008-10-17
seattle
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Quote:Are people waking up?  Were there mushrooms with a thin blue ring in your lunch?
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"Better to die on your feet than live on your knees"
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Toddmeister
Posts: 34
Incept: 2009-08-10
Bay City, MI
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Quote:GM was pushing 0% financing on all their vehicles last month....including corvette. Yeah my oldest brother got sucked into that last month. New Chevy HD crew cab pickup in his driveway now. |
Trades50
Posts: 4215
Incept: 2007-10-30
Land of Tax and Spend
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I see plenty of new smaller cars around. My neighbor across the street brought home a Chevy Volt about 4 weeks ago. People reacted and dumped their year old Dodge Caravans and Toyota vans in favor of hybrids last time this occurred.
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When the people fear the government, there is tyranny. When the government fears the people, there is liberty. - Thomas Jefferson
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Flappingeagle
Posts: 1227
Incept: 2011-04-14
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Quote:GM was pushing 0% financing on all their vehicles last month....including corvette. Most people can't seem to comprehend that if you can get $5000 off for cash then the 0% interest really isn't 0%. GM simply charges you the $5000 above the cash price then lets you make 0% payments on the higher price, you are still paying the interest, its just figured as a lump sum. My rule is this for vehicles, if I can't pay cash, I can't afford it. Flap
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Here are my predictions for everyone to see:
S&P 500 at 320, DOW at 2200, Gold $300/oz, and Corn $2/bu.
"You can't build a house of cards on a shaking table." - Tony Johns
The January 2015 AMZN put at $130 (cost $4.25) will be a winner.
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Oldpool
Posts: 874
Incept: 2010-06-23
LI NY
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I bought a nice used Yukon for next to nothing. High gas won't last. This is not my commuter car that one gets 26 mpg.
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Liberty, Comrade!
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Sean
Posts: 1766
Incept: 2009-04-21
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Quote:Unless you are driving a LOT of miles with a real gas guzzler it is very hard to save enough on fuel to offset a car payment. Right now, for my wife's car, gas would have to be north of $8/gal. to make it immediately worthwhile to buy a new one.
The interest cost now are so low zero percent financing is really no big thrill.
You have to factor in not only the car payment but our insurance would be about $150 more a month for a new vehicle and the plates would cost more too.
We have about $30k owed on our condo and that is all the debt I intend to carry.
Exactly! Well you know what they say about fools and money! As for me I have a $40k cash cushion with some G&S and a paid for condo (bought in foreclsoure for cash) and no kids and no wife, etc. And I drive a 1995 Accord that the AC does not work (I live in downtown Phoenix) and has 246k miles on it and an engine that needs a valve job, etc. No ****in way will I get rid of it until it literally blows up! ANd I just got a big raise because I threatined to leave and will probably get another kida big one in July! No Debt.
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* I think Ann Barnhardt is more and more right. God help us!
* Progressives / Marxists / Communists are many things, STUPID and IMPATIENT are not two of them.
* A hot civil war is coming.
* And people wonder why I prep!
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Drjerry
Posts: 584
Incept: 2007-11-06
Seattle
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I pay my MasterCard off every month. Pay 0% interest. The crummy barstids hit me with a service charge.
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Wakeupcall
Posts: 4233
Incept: 2009-06-08
Hampton Roads, VA
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Who hit you with a service charge? I do the same thing & pay in full every month. If I were hit with a service charge, the card would be cancelled before the envelope fell from my hands.
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“Nothing travels faster than the speed of light, with the possible exception of bad news, which obeys its own special laws.”
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Etz
Posts: 13890
Incept: 2007-06-26
LA
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You can almost hear it already...
Obama gonna increase ma' limit
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Legal chicanery and beneficent darkness are the banker's stoutest allies - F.Pecora.
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Drjerry
Posts: 584
Incept: 2007-11-06
Seattle
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@Wake up It's Crapital one. And yes I'm setting up with another bank now.I know what questions to ask now.
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Mannfm11
Posts: 3545
Incept: 2009-02-28
DFW, Tx
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I think a lot of credit card spending is balancrs paid off every month. At some point that money gets counted in the sum of credit, even though the balances are paid. That amount has reached a peak, as the people who can pay have already moved from cash to credit cards. Also, I think people who have cash to pay their cards every month have cash for a reason. They control their spending. It really don't take but one $5000 credit limit to mess up a lot of people's budgets.
The nonrevolving credit? Seems I recall revolving adn non-revolving are about a trillion each. That would mean non-revolving went up about $6 billion a month. Figure that on a $25,000 average car, that is roughly 250,000 cars a month. Being sales cratered in 2009, the numbers would fit. Auto sales still haven't made it back to the bubble years between 1995 and 2007.
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The only function of economic forecasting is to make astrology look respectable.---John Kenneth Galbraith
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Crzymorse
Posts: 1191
Incept: 2010-06-25
Maryland
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I don't think it's the 0 percent financing that's moving cars. I'm pretty sure, GOvernment motors picked up the subprime lending.
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Flappingeagle
Posts: 1227
Incept: 2011-04-14
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Sean said: Quote:As for me I have a $40k cash cushion with some G&S and a paid for condo (bought in foreclsoure for cash) and no kids and no wife, etc. I for one will not buy a property that is attached to someone else's property or, has any kind of 'association' where I can legally be hit up for money. There are just so many ways it can go wrong for you. If it's legal to do, I'd get my lawyer to make up a little corporation which would own that condo. That way if things ever went really bad you could just let your corportaion go BK and walk away. Flap
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Here are my predictions for everyone to see:
S&P 500 at 320, DOW at 2200, Gold $300/oz, and Corn $2/bu.
"You can't build a house of cards on a shaking table." - Tony Johns
The January 2015 AMZN put at $130 (cost $4.25) will be a winner.
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Hogman
Posts: 7874
Incept: 2008-02-18
Derby City, USA
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^^interesting (good)
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Flaps10
Posts: 5165
Incept: 2008-10-17
seattle
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Car dealers are back to financing anyone who can fog a mirror.
KD, was this rash of credit buying (mostly auto) not typical year on year from people getting their tax returns?
I know that in my area all car dealers are rubbing their palms together starting in about January. It's the only time most of America can come up with a down payment.
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"Better to die on your feet than live on your knees"
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Genesis
Posts: 130747
Incept: 2007-06-26
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Maybe Flaps, but it's both too early and out of character with last year.
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I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
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Flaps10
Posts: 5165
Incept: 2008-10-17
seattle
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I've noticed ads for car dealers that have you bring in your W-2 for down payment, which might move the curve to the left. Not sure if they do your taxes for you or what. Seems hazardous since many people will have their actual return commandeered by child support, etc.
I won't have any part of it. Just paid cash for my motorcycle and as soon as my car is paid off it will be the last time I'm dumb enough to buy a vehicle on credit.
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"Better to die on your feet than live on your knees"
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Morla
Posts: 815
Incept: 2009-11-09
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Credit cards are damn convenient if used responsibly, though the banks hand them out much too freely. "Creditworthy until proven a bum" is a questionable methodology. People with no credit history should be given $250 credit cards and told to hit the bricks for a couple years.
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Fear of govt IS the government.. Statism is a pack of unbacked threats; If govt gets out of control, ignore it and go about life as you see fit. Where's your crown, King Nothing?
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