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It’s “spit the coffee” time again this morning.

Why should you bother paying for so-called “financial media” when everything is claimed that the bad numbers are “the weather”when the bad numbers came from revisions back into November, long before the weather occurred?

This sort of crap is akin to claiming that glo-bull warming is happening when the same warming effect is seen on….. MARS.

We all know that you and your million besties all took your SUVs and boats over there and drove all around the red planet to raise it’s atmospheric CO2 content, right?

Never mind that there’s this season called “winter” that comes every year, and it’s usually cold and snowy in large parts of the country.  Yes, we have had snowstorms.  That’s been hyped up too, particularly by naming snowstorms as if they were hurricanes.

Heh, I woke up to a nasty line of thunderstorms here at my location this morning.  It was loud, raining and windy.  That’s an excuse for terrible economic performance, you see…. right?

Oh wait…. the weather changes.  And a huge drop in home starts came in…… the West, which didn’t see any nasty snowstorms or other out-of-seasonal-normal weather.

Yeah, that makes sense.  NOT.

Essentially the bottom line is that so-called “analysts” appear to be getting increasingly desperate to find some way to justify the disconnect between economic performance and market performance, without simply saying “collective insanity is responsible, which we not only have a stake in stoking further we’ve been stoking it actively for quite some time.

Of course that would be like an arsonist saying “well, yes, officer, I did use this can of gasoline to start that fire.”

It’s especially amusing to read pieces like this in that context:

The growing student loan burden carried by millions of Americans threatens to undermine the housing recovery’s momentum by discouraging, or even blocking, a generation of potential buyers from purchasing their first homes.

“This is a huge issue for us,” said David H. Stevens, chief executive of the Mortgage Bankers Association. “Student debt trumps all other consumer debt. It’s going to have an extraordinary dampening effect on young peoples’ ability to borrow for a home, and that’s going to impact the housing market and the economy at large.”

No, really?

You mean the $500 a month student loan payment is half of a decent first-time homebuyer payment — or more?

Well, yes.  Never mind that $500 a month x 12 months = $6,000 a year saved toward a down payment, and if you put 20% down (which you should) then four years of that savings would make it possible for you to buy a $120,000 house.

Financing $96,000 @ 5% for 30 years gives you a P&I on that $120,000 house of…. $513.21, or awfully close to that student loan payment.

In other words you forego the ability to buy the house by taking the student loan debt.

And for how long do you forego it?

10 years, plus four more to build the down payment, or 14 years post-graduation.

If you graduate in four years (ha!) you’re 22, so this means you’re not buying a house until you’re 36.

I have no quarrel with someone choosing to go deeply into debt of their own volition provided they’re not tricked and full disclosure is practiced.  However, this is not the case today.  Colleges and even High School counselors and administration cheerleaders are fully-aware of this problem yet they say exactly nothing about it.  Worse, they intentionally omit explaining to people the impact of exponential functions in the real world in favor of “Common Core” and “New Math” which looks an awful lot like an act intended to screw people.

Indeed, I’ve seen what passes for an “Economics” class at the High School level, which is typically taken by Seniors — a point at which this ought to be drilled into every kid’s head.

It isn’t, and I would argue that’s intentional — after all, that might “damage” the percentage of those kids that choose to impoverish themselves so the High School can post up big college matriculation numbers — irrespective of the fact that it is precisely those policies along with the “just sign here and screw your future” nonsense that has led to the explosion of cost in the first place.

In 2007 and 2008 the panic came not because of bad business practices themselves — those had been going on for a long time at that point — but rather because not one critical person (and nobody ever knows who it was in advance!) stood up and loudly disagreed.

That day is coming again, for the same reason — willful and intentional blindness toward a grossly over-extended economic picture fueled by debt accumulation that cannot permanently continue as a simple function of arithmetic.

Who will be the one that stands up this time?

I don’t know, and neither does anyone else — but that it will happen is a certainty, as we have utterly refused over the last six years to do anything productive about the underlying problem.

The Market Ticker

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