They Got Bailed Out, We Got Sold Out: How the Banks Profit from the Lack of Jobs

[marmar]

AlterNet / By Sarah Jaffe

They Got Bailed Out, We Got Sold Out: How the Banks Profit from the Lack of Jobs
Consumer borrowing hit its highest level since August 2007 this June; here's why that's not a good sign for the economy.

August 11, 2011 |


Amidst a lot of indicators that say we could be heading for another round of recession—before the so-called recovery even reaches most people, let alone our millions of unemployed—June saw a jump in consumer borrowing, three times as much as expected, according to Bloomberg News. The $15.5 billion increase in credit was the biggest since August 2007, and revolving debt, which includes credit cards, was up by $5.21 billion, the most since March 2008.

In a consumer-dependent economy, that's a good thing, isn't it? After all, borrowers must have some confidence in their ability to pay back their debt, right?

Not so fast.

During the debt ceiling drama, we heard a lot about the need for the government to “live within its means,” comparing the government's spending to a household shelling out money for unneeded things. ............(more)

The complete piece is at: http://www.alternet.org/economy/151963/they_got_bailed_out%2C_we_got_sold_out%3A_how_the_banks_profit_from_the_lack_of_jobs/

[rucky]

1. I thought credit card usage was going down, not up.

Why isn't this front and center in the news? you don't have to answer that.

[femrap]

2. Credit card usage has been down....

now all of sudden, people have turned back to their cards....I believe they use the cards for basic necessities. As a result, the MSM has been told NOT to report this.

Kids are out of school...they need to be fed at home now 3 times/day. They need summer clothes, a bathing suit, new tennies/flip-flops. They want to be entertained...movies, short trips, sporting equipment.