Welcome to the updated Financial Sense! We hope you enjoy the new experience.

We have changed payment processors, so any existing renewals will need to be re-subscribed after expiration. You will receive an email when this happens. Also Subscriber Feeds for iTunes and RSS have changed. Visit your Subscriber Features to find updated information.

Watch this video for a quick overview or send us a message using the Contact page. Thank you!

Millennials on Debt: “Me No Likey”

Thu, Feb 25, 2016 - 10:21am

A new report from the New York Fed shows a disturbing trend (if you’re a bank, that is) about consumer credit as the borrow-and-spend baby-boomer generation heads off into the sunset with a chastened millennial generation not able/willing to take up the slack.

Graying Debt

Here’s the key takeaway:

We find that aggregate debt balances held by younger borrowers have declined modestly from 2003 to 2015, with a debt portfolio reallocation away from credit card, auto, and mortgage debt, toward student debt. Debt held by borrowers between the ages of 50 and 80, however, increased by roughly 60 percent over the same time period.

It appears that getting saddled with monstrous student loan debt might be good for tenured professors and college administrators, but bad for an economy that is based largely on buying things you don’t need with money you don’t have.

Related:
Mike Halsall on Prediction Markets, Crowd Wisdom, and Forecasting

About the Author

Founder
tim [at] iaconoresearch [dot] com ()
Financial Sense Wealth Management: Invest With Us
Subscribe to Financial Sense Newshour on iTunes
randomness