Rollin' Like Sisyphus

Of Economic Barometers, Large & Small

Posted in A Chronicle Of Decline by Huckleberry on July 29, 2014



After five seasons of Recovery Summer, the green shoots are really paying off:

More than 35 percent of Americans have debts and unpaid bills that have been reported to collection agencies, according to a study released Tuesday by the Urban Institute. […]The delinquent debt is overwhelmingly concentrated in Southern and Western states. Texas cities have a large share of their populations being reported to collection agencies: Dallas (44.3 percent); El Paso (44.4 percent), Houston (43.7 percent), McAllen (51.7 percent) and San Antonio (44.5 percent). Almost half of Las Vegas residents- many of whom bore the brunt of the housing bust that sparked the recession- have debt in collections. Other Southern cities have a disproportionate number of their people facing debt collectors, including Orlando and Jacksonville, Florida; Memphis, Tennessee; Columbia, South Carolina; and Jackson, Mississippi.

Bad news, of course, for all those living in a big White House desperately praying to Allah to FLOTUS’ biceps for a tangible recovery, but the article goes on to note what it thinks is good news:

Only about 20 percent of Americans with credit records have any debt at all. Yet high debt levels don’t always lead to more delinquencies, since the debt largely comes from mortgages. An average San Jose resident has $97,150 in total debt, with 84 percent of it tied to a mortgage. But because incomes and real estate values are higher in the technology hub, those residents are less likely to be delinquent. By contrast, the average person in the Texas city of McAllen has only $23,546 in debt, yet more than half of the population has debt in collections, more than anywhere else in the United States.

The operative word that should be in there but isn’t for the denizens of places like San Jose is “yet.” Check back when all that mortgage debt persists while the value of those homes gets halved amid dwindling demand and rising interest rates.
Summer of Suck, yo.


One Response

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  1. Doom said, on July 30, 2014 at 08:24

    What? No trickle down of the bailouts? *evil grins*

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