{"id":68252,"date":"2024-05-19T18:18:12","date_gmt":"2024-05-19T23:18:12","guid":{"rendered":"https:\/\/olduvai.ca\/?p=68252"},"modified":"2024-05-19T18:18:12","modified_gmt":"2024-05-19T23:18:12","slug":"because-were-still-not-sufficiently-indebted","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=68252","title":{"rendered":"Because We’re Still Not Sufficiently Indebted…"},"content":{"rendered":"
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Because We’re Still Not Sufficiently Indebted…<\/a><\/h3>\n

Now the government wants your home equity<\/strong><\/p>\n<\/div>\n

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Zero Hedge<\/a>\u00a0just posted a long look at how the \u201cbuy now, pay later\u201d (BNPL) industry now accounts for about $700 billion of largely unreported \u201cphantom debt\u201d. This, speculates ZH, is why the economy hasn\u2019t fallen into recession.<\/p>\n

Now come the unintended consequences:<\/p>\n

Pernicious effects of BNPL credit are piling up: the Harris Poll survey conducted last month, provides some crucial clues about how Americans use BNPL. For one,\u00a0splitting payments into smaller chunks encourages more spending, obviously.<\/strong><\/p>\n

More than half of respondents who use BNPL said it allowed them to purchase more than they could afford, while nearly a quarter agreed with the statement that their BNPL spending was \u201cout of control.\u201d Harris also found that 23% of users said they couldn\u2019t afford the majority of what they bought without splitting payments, while more than a third turned to the services after maxing out credit cards\u2026<\/p>\n

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\u2026In other words, not only do we not know just how big the BNPL problem is, it is actively masked by credit agencies which can’t accurately calculate the FICO score of tens of millions of Americans, and as a result their credit capacity is artificially boosted with far more debt than they can handle… and\u00a0that’s why the US consumer has been so “strong” in recent years, defying all conventional credit metrics.<\/strong><\/p>\n

BNPL is obviously dangerous and stupid because the last thing working people need is another way to wrack up more unpayable debt.\u00a0But it\u2019s not the worst thing the US is considering:<\/strong><\/em><\/p>\n

Enter\u2026Government-Funded Home Equity Loans<\/strong><\/p>\n

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$3 trillion could be injected into the U.S. economy without any federal spending by tweaking this corner of the mortgage market, \u2018Oracle of Wall Street\u2019 says<\/a><\/strong><\/h4>\n<\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n

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Because We’re Still Not Sufficiently Indebted… Now the government wants your home equity Zero Hedge\u00a0just posted a long look at how the \u201cbuy now, pay later\u201d (BNPL) industry now accounts for about $700 billion of largely unreported \u201cphantom debt\u201d. This, speculates ZH, is why the economy hasn\u2019t fallen into recession. Now come the unintended consequences: […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[195,7544,827,834],"class_list":["post-68252","post","type-post","status-publish","format-standard","hentry","category-economics","tag-debt","tag-john-rubino","tag-united-states","tag-us"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/68252","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=68252"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/68252\/revisions"}],"predecessor-version":[{"id":68253,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/68252\/revisions\/68253"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=68252"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=68252"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=68252"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}