Fucking Fed is Comprised of Retards-$1 Trillion My ASS

[AZGrizFan]

So the New York Fed puts out this info regarding consumer paydown of debt over the past several quarters....positive stuff, right?

http://money.cnn.com/2010/11/08/news/ec ... /index.htm" onclick="window.open(this.href);return false;

Americans have paid off nearly $1 trillion in debt over the past two years, although the pace of repayment has slowed, according to a regional Federal Reserve report released Monday.

Total consumer debt was $11.6 trillion as of Sept. 30; down 7.4%, or $922 billion, from the peak reached in the third quarter of 2008, according to the Federal Reserve Bank of New York. Consumer indebtedness fell another 0.3% in the third quarter, after a 3.3% decline in the prior quarter.

So, being a numbers guy, this starts me thinking: Have they backed out the impact of chargeoffs/foreclosures/repossessions from this figure, or is this ACTUAL paydown of current debt by virtuous Americans?

A little more searching reveals THIS:

http://blogs.wsj.com/economics/2010/09/ ... down-debt/" onclick="window.open(this.href);return false;

0.08% — The annual rate at which U.S. consumers have pared down their debts since mid-2008, not counting defaults.

U.S. consumers might not be quite as virtuous as they seem.

The sharp decline in U.S. household debt over the past couple years has conjured up images of people across the country tightening their belts in order to pay down their mortgages and credit-card balances. A closer look, though, suggests a different picture: Some are defaulting, while the rest aren’t making much of a dent in their debts at all.

Alas, it's just as I feared:

There are two ways, though, that the debts can decline: People can pay off existing loans, or they can renege on the loans, forcing the lender to charge them off. As it happens, the latter accounted for almost all the decline. Our own analysis of data from the Fed and the Federal Deposit Insurance Corp. suggests that over the two years ending June 2010, banks and other lenders charged off a total of about $588 billion in mortgage and consumer loans.

That means consumers managed to shave off only $22 billion in debt through the kind of belt-tightening we typically envision. In other words, in the absence of defaults, they would have achieved an annualized decline of only 0.08%.

So, the Fed says $1 TRILLION has been paid off, but all but $22 BILLION of that is through CHARGEOFFS. Is this a blatant attempt by the Fed to spin statistics in their favor? Are they that smart? Or that retarded?

Inquiring minds want to know.

[Chizzang]

The entire banking industry is filled with cheating lying low life criminals - no better than a common drug dealer or pimp on the street... A three piece suit and a pedigree doesn't mean you're not a total piece of Sh!t

I believe the expression is:
They would crawl over the body of their dead girlfriend to fuck their mother...


Money is their God...

All of 'em except AZ he's a hell of a nice guy

[AZGrizFan]

The entire banking industry is filled with cheating lying low life criminals - no better than a common drug dealer or pimp on the street... A three piece suit and a pedigree doesn't mean you're not a total piece of Sh!t

I believe the expression is:
They would crawl over the body of their dead girlfriend to fuck their mother...


Money is their God...

All of 'em except AZ he's a hell of a nice guy

I realize your posts are mostly hyperbole, but let me place that bar just a TAD bit higher than ME. Hundreds of thousands of bankers in community banks and credit unions across the country are wonderful, good hearted people who truly care about those who do business with them. These people in no way resemble the "cheating lying low life criminals" who reside in the big corner offices of banks like Chase, BofA, Wells Fargo (and now apparently Big West Bank), etc., etc., etc.

To do what you suggest would be akin to lumping all Harvard grads into one group as pretentious, preening, pompous, polo-playing, polo-wearing a-holes.

[CitadelGrad]

I worked for a short time for the Federal Reserve Bank of St. Louis until I couldn't stand it anymore. My responsibility was to coordinate Fed programs and policies with those of the U.S. Treasury Dept. Believe me, those people have absolutely no problem fudging and fabricating numbers to suit their needs. The Fed is a private bank and is accountable only to themselves. They aren't even subject to the banking regulations that apply to other banks. They do as they please and give a big ol' "Fuck You" to anyone who questions them.

[ASUG8]

While it's largely a matter of semantics about $1 trillion being "paid off", consumer debt is truly down due to foreclosures and writeoffs. We all end up paying for it through "not so" free checking, new fee schedules and the like. We also end up paying for it by having smaller and smaller hoops to jump through to qualify for credit cards, mortgages, refi's on existing mortgages, and the like - THE WAY IT OUGHT TO BE. I'm going to sound like an ass, but it's the truth - not everyone is entitled to $700K houses, BMW's, multiple big screen TV's, lavish vacations, and housekeeping services. You make do with the income you have - if banks are tightening down a bit to reduce their exposure I applaud it - Americans have demonstrated their lack of control in exercising personal restraint in keeping up with their local Joneses and unfortunately it's come back to bite consumers in the ass as well as the banks who encouraged it.

I'm in no way taking the side of the banks in this - they were handing out money like Halloween candy and consumers were stupid enough to take it with both sides turning a blind eye to the day of reckoning that would eventually come. AZ is pointing out a credit correction in my opinion, where the rules are revised and will hopefully get everyone's collective heads out of their asses regarding savings rates and maintaining manageable debt levels.

[AZGrizFan]

While it's largely a matter of semantics about $1 trillion being "paid off", consumer debt is truly down due to foreclosures and writeoffs. We all end up paying for it through "not so" free checking, new fee schedules and the like. We also end up paying for it by having smaller and smaller hoops to jump through to qualify for credit cards, mortgages, refi's on existing mortgages, and the like - THE WAY IT OUGHT TO BE. I'm going to sound like an ass, but it's the truth - not everyone is entitled to $700K houses, BMW's, multiple big screen TV's, lavish vacations, and housekeeping services. You make do with the income you have - if banks are tightening down a bit to reduce their exposure I applaud it - Americans have demonstrated their lack of control in exercising personal restraint in keeping up with their local Joneses and unfortunately it's come back to bite consumers in the ass as well as the banks who encouraged it.

I'm in no way taking the side of the banks in this - they were handing out money like Halloween candy and consumers were stupid enough to take it with both sides turning a blind eye to the day of reckoning that would eventually come. AZ is pointing out a credit correction in my opinion, where the rules are revised and will hopefully get everyone's collective heads out of their asses regarding savings rates and maintaining manageable debt levels.

Actually, you're pointing out a wholly separate issue (the stupidity of banks and consumers alike). I'm addressing the Fed's inability to understand their own numbers. Celebrating $1 trillion "paid down", when in reality there's no altruism here....it's all been WRITTEN down. Big difference, but the Fed is putting a political spin on it to make it (and stupid Americans) think that we're all "doing the right thing" here....

[ASUG8]

While it's largely a matter of semantics about $1 trillion being "paid off", consumer debt is truly down due to foreclosures and writeoffs. We all end up paying for it through "not so" free checking, new fee schedules and the like. We also end up paying for it by having smaller and smaller hoops to jump through to qualify for credit cards, mortgages, refi's on existing mortgages, and the like - THE WAY IT OUGHT TO BE. I'm going to sound like an ass, but it's the truth - not everyone is entitled to $700K houses, BMW's, multiple big screen TV's, lavish vacations, and housekeeping services. You make do with the income you have - if banks are tightening down a bit to reduce their exposure I applaud it - Americans have demonstrated their lack of control in exercising personal restraint in keeping up with their local Joneses and unfortunately it's come back to bite consumers in the ass as well as the banks who encouraged it.

I'm in no way taking the side of the banks in this - they were handing out money like Halloween candy and consumers were stupid enough to take it with both sides turning a blind eye to the day of reckoning that would eventually come. AZ is pointing out a credit correction in my opinion, where the rules are revised and will hopefully get everyone's collective heads out of their asses regarding savings rates and maintaining manageable debt levels.

Actually, you're pointing out a wholly separate issue (the stupidity of banks and consumers alike). I'm addressing the Fed's inability to understand their own numbers. Celebrating $1 trillion "paid down", when in reality there's no altruism here....it's all been WRITTEN down. Big difference, but the Fed is putting a political spin on it to make it (and stupid Americans) think that we're all "doing the right thing" here....

It's easy for me to get off on a rant about consumer spending, but your argument is at the core of what I'm talking about. The bottom line is that if you're being given pressure to come up with something positive out of a given data set, you can spin the stats the paint a positive/neutral/negative picture any way you like. I think the Fed understands their numbers perfectly, but it's not as sexy a story to tell the public that debt reduction is due to writedowns and writeoffs. Increased news about foreclosures and repo's doesn't inspire folks to begin moderate spending again.

[travelinman67]

The entire banking industry is filled with cheating lying low life criminals - no better than a common drug dealer or pimp on the street... A three piece suit and a pedigree doesn't mean you're not a total piece of Sh!t

I believe the expression is:
They would crawl over the body of their dead girlfriend to fuck their mother...


Money is their God...

All of 'em except AZ he's a hell of a nice guy

Pussy.

Hey, AZ...got any pics of V's mom?



I thought so.

[AZGrizFan]

The entire banking industry is filled with cheating lying low life criminals - no better than a common drug dealer or pimp on the street... A three piece suit and a pedigree doesn't mean you're not a total piece of Sh!t

I believe the expression is:
They would crawl over the body of their dead girlfriend to fuck their mother...


Money is their God...

All of 'em except AZ he's a hell of a nice guy

Pussy.

Hey, AZ...got any pics of V's mom?



I thought so.

Yeah, and you can have her.

[Cap'n Cat]

So the New York Fed puts out this info regarding consumer paydown of debt over the past several quarters....positive stuff, right?

http://money.cnn.com/2010/11/08/news/ec ... /index.htm" onclick="window.open(this.href);return false;

Americans have paid off nearly $1 trillion in debt over the past two years, although the pace of repayment has slowed, according to a regional Federal Reserve report released Monday.

Total consumer debt was $11.6 trillion as of Sept. 30; down 7.4%, or $922 billion, from the peak reached in the third quarter of 2008, according to the Federal Reserve Bank of New York. Consumer indebtedness fell another 0.3% in the third quarter, after a 3.3% decline in the prior quarter.

So, being a numbers guy, this starts me thinking: Have they backed out the impact of chargeoffs/foreclosures/repossessions from this figure, or is this ACTUAL paydown of current debt by virtuous Americans?

A little more searching reveals THIS:

http://blogs.wsj.com/economics/2010/09/ ... down-debt/" onclick="window.open(this.href);return false;

0.08% — The annual rate at which U.S. consumers have pared down their debts since mid-2008, not counting defaults.

U.S. consumers might not be quite as virtuous as they seem.

The sharp decline in U.S. household debt over the past couple years has conjured up images of people across the country tightening their belts in order to pay down their mortgages and credit-card balances. A closer look, though, suggests a different picture: Some are defaulting, while the rest aren’t making much of a dent in their debts at all.

Alas, it's just as I feared:

There are two ways, though, that the debts can decline: People can pay off existing loans, or they can renege on the loans, forcing the lender to charge them off. As it happens, the latter accounted for almost all the decline. Our own analysis of data from the Fed and the Federal Deposit Insurance Corp. suggests that over the two years ending June 2010, banks and other lenders charged off a total of about $588 billion in mortgage and consumer loans.

That means consumers managed to shave off only $22 billion in debt through the kind of belt-tightening we typically envision. In other words, in the absence of defaults, they would have achieved an annualized decline of only 0.08%.

So, the Fed says $1 TRILLION has been paid off, but all but $22 BILLION of that is through CHARGEOFFS. Is this a blatant attempt by the Fed to spin statistics in their favor? Are they that smart? Or that retarded?

Inquiring minds want to know.

Funny, all of this, word for word, was in the Limbaugh Letter!

[CitadelGrad]

Clearly, the Limbaugh Letter wasn't the original source. Anyway, what does it matter? Can you actually refute any of he data or conclusions?

[Cap'n Cat]

Clearly, the Limbaugh Letter wasn't the original source. Anyway, what does it matter? Can you actually refute any of he data or conclusions?

Don't want to. Any eager person can counter his graphs and "facts". I'm not eager, I just like to poke my desert rat friend, Graddy, you mind????

[GannonFan]

There's a Limbaugh Letter? Seriously, why are you guys on that mailing list???

[CitadelGrad]

There's a Limbaugh Letter? Seriously, why are you guys on that mailing list???

I've never actually seen it, but I'm aware of it.

[Chizzang]

The entire banking industry is filled with cheating lying low life criminals - no better than a common drug dealer or pimp on the street... A three piece suit and a pedigree doesn't mean you're not a total piece of Sh!t

I believe the expression is:
They would crawl over the body of their dead girlfriend to fuck their mother...


Money is their God...

All of 'em except AZ he's a hell of a nice guy

I realize your posts are mostly hyperbole, but let me place that bar just a TAD bit higher than ME. Hundreds of thousands of bankers in community banks and credit unions across the country are wonderful, good hearted people who truly care about those who do business with them. These people in no way resemble the "cheating lying low life criminals" who reside in the big corner offices of banks like Chase, BofA, Wells Fargo (and now apparently Big West Bank), etc., etc., etc.

To do what you suggest would be akin to lumping all Harvard grads into one group as pretentious, preening, pompous, polo-playing, polo-wearing a-holes.

Ouch..!!!

You complete me AZ
You are the Yin to my Chang the apple in my Pie - the sugar in my cough drop
I do enjoy stroking your mild case of Parataxic distortion

[Cap'n Cat]

There's a Limbaugh Letter? Seriously, why are you guys on that mailing list???

I've never actually seen it, but I'm aware of it.

Pfffft. You masturbate to it daily. Who you trying to kid?

[CitadelGrad]

I've never actually seen it, but I'm aware of it.

Pfffft. You masturbate to it daily. Who you trying to kid?

I'm not kidding anyone. In fact, the only time I've listened to Rush Limbaugh's radio show in the last ten years was when I was in a traveling by car from Omaha to Yankton, S.D. with an asshole who insisted on listening to it.

[AZGrizFan]

So the New York Fed puts out this info regarding consumer paydown of debt over the past several quarters....positive stuff, right?

http://money.cnn.com/2010/11/08/news/ec ... /index.htm" onclick="window.open(this.href);return false;





So, being a numbers guy, this starts me thinking: Have they backed out the impact of chargeoffs/foreclosures/repossessions from this figure, or is this ACTUAL paydown of current debt by virtuous Americans?

A little more searching reveals THIS:

http://blogs.wsj.com/economics/2010/09/ ... down-debt/" onclick="window.open(this.href);return false;





Alas, it's just as I feared:



So, the Fed says $1 TRILLION has been paid off, but all but $22 BILLION of that is through CHARGEOFFS. Is this a blatant attempt by the Fed to spin statistics in their favor? Are they that smart? Or that retarded?

Inquiring minds want to know.

Funny, all of this, word for word, was in the Limbaugh Letter!

That would be f-in' hilarious, except my sources were the Wall Street Journal and CNN.

[AZGrizFan]

You complete me AZ
You are the Yin to my Chang the apple in my Pie - the sugar in my cough drop
I do enjoy stroking your mild case of Parataxic distortion

I have no idea what that means so I'm taking that in a sexual manner.