Author Archives: LouisGoldstein

It’s Old People Who Have More Debt, Not the Young

by LouisGoldstein Posted on March 21, 2016

Mother Jones

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Ylan Mui points today to a February note from the New York Fed called “The Graying of American Debt.” Here’s the basic picture:

The student debt story is about what you’d expect: young consumers have more of it, but their total debt load is lower than it was in 2003 because they have lower mortgage debt. Basically, they’re trading student debt for mortgage debt.

But older age groups make up for it with higher debt than they had in 2003. This is especially true at age 65, where total debt is up by about a third over the past decade. So what does it all mean?

The close relationship between credit score and age…reflects an average credit history that is considerably stronger among older borrowers….Further, older borrowers’ income streams are comparatively stable, and they have greater experience with credit. Survey of Consumer Finances data show that net worth levels for households with heads who are age 65 and older in 2013 are quite similar to their 2004-07 levels. This holds despite the evidence, seen in the second chart in this post, that consumers are holding substantially more per capita debt at age 65 and beyond. If history is any guide, then, we expect older borrowers to make more reliable payments. Indeed, our data show no clear trend toward higher delinquency at older ages as average balances at older ages have increased.

Hence the aging of the American borrower bodes well for the stability of outstanding consumer loans. At the same time, the likely combination of muted credit access and lower demand for credit that we observe among our younger borrowers may well have consequences for growth. The graying of American debt that we observe between 2003 and 2015, then, might be interpreted as a shift toward greater balance sheet stability, and away from credit-fueled consumption growth.

More stability, less growth. Just what old people want. But is it good for the country?

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It’s Old People Who Have More Debt, Not the Young

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Have You Ever Thought About the Republican Party? I Mean, Really Thought About It?

by LouisGoldstein Posted on October 10, 2015

Mother Jones

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As much as we’ve talked about it, I wonder if we’ve really gotten our heads around the fact that Paul Ryan is literally being begged to be the leader of the Republican Party. He is Literally. Being. Begged. To be the leader of one of America’s two major parties! And he doesn’t want it, no how, no way. Because he knows there’s a substantial faction of his party that’s insane. And who would know better?

I feel like this is one of those things that maybe you can only truly comprehend after a couple of blunts:

Boehner: Dude, have you ever thought about the Republican Party? I mean, really thought about it?

Ryan: I know. I know. It’s, like, insane, man. (Giggles, coughs.) This is good stuff. Medical, right?

Boehner: That’s it! Totally insane. I mean, completely batshit fucked up.

Ryan: But awesome. Insane but still awesome. I mean, seriously, it’s our only defense against, like, total socialism.

Boehner: Oh man, you been reading Atlas Shrugged again? You’re bumming me out, dude.

And while we’re on the subject, I have another idea. As thousands of people have pointed out, nothing in the Constitution says the Speaker has to be a member of Congress. This has spawned a whole cottage industry of jokes. Donald Trump! Bibi Netanyahu! Rush Limbaugh! But I have another idea: does it have to be one person? Here’s the relevant text:

The House of Representatives shall chuse their Speaker and other Officers….

Sure, “Speaker” is singular in that sentence, but “Speaker and other Officers” suggests that maybe leadership of the House could be shared. How about a triumvirate, like Rome in its glory days? Ryan could be one, some tea party nutcase could be another, and the third could be, um, Mia Love, who’s a black woman and the daughter of immigrants. I’m not sure how they’d make decisions, but I guess they’d figure out something. Maybe rock paper scissors.

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Have You Ever Thought About the Republican Party? I Mean, Really Thought About It?

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