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“American Consumer Debt Levels Are Low” and Other Dimon Delusions

Zero Hedge  ( Original )
JUN 11, 2018

Jamie Dimon, CEO of JPMorgan, enjoys saying things that are demonstrably false so long as they cast his bank and its business prospects in a positive light.

There’s the gut buster that Too Big to Fail banks are no longer a problem. Even though they are larger than they were prior to the Great Recession and still employ the same impenetrably murky accounting of derivatives that ultimately destroyed Lehman Brothers.

That they are marginally better capitalized is neither here nor there; no amount of capital would have saved Lehman from its gigantic, unregulated derivatives bets. The elephant in the room now, as it always was, is that once panic grips the system and a bank is seen as inherently unstable, all of its counterparties vanish, feeding that panic and leaving the bank to die.

Which it won’t be allowed to if it’s been deemed Too Big to Fail. At which point the government steps in to bail it out.

Dimon’s most recent hilarity suggests that American consumer debt levels are low. Try and square that with the statistics below.

#1 78 million Americans are participating in the “gig economy” because full-time jobs just don’t pay enough to make ends meet these days.

#2 In 2011, the average home price was 3.56 times the average yearly salary in the United States. But by the time 2017 was finished, the average home price was 4.73 times the average yearly salary in the United States.

#3 In 1980, the average American worker’s debt was 1.96 times larger than his or her monthly salary. Today, that number has ballooned to 5.00.

#4 In the United States today, 66 percent of all jobs pay less than 20 dollars an hour.

#5 102 million working age Americans do not have a job right now. That number is higher than it was at any point during the last recession.

#6 Earnings for low-skill jobs have stayed very flat for the last 40 years.

#7 Americans have been spending more money than they make for 28 months in a row.

#8 In the United States today, the average young adult with student loan debt has a negative net worth.

#9 At this point, the average American household is nearly $140,000 in debt.

#10 Poverty rates in U.S. suburbs “have increased by 50 percent since 1990”.

#11 Almost 51 million U.S. households “can’t afford basics like rent and food”.

#12 The bottom 40 percent of all U.S. households bring home just 11.4 percent of all income.

#13 According to the Federal Reserve, 4 out of 10 Americans do not have enough money to cover an unexpected $400 expense without borrowing the money or selling something they own.

#14 22 percent of all Americans cannot pay all of their bills in a typical month.

#15 Today, U.S. households are collectively 13.15 trillion dollars in debt. That is a new all-time record.

ORIGINAL SOURCE: 15 Signs That America's Middle Class Is Being Systematically Destroyed by Tyler Durden at Zero Hedge on 6/8/18