Debt Deal - Obama Accused of ‘Surrender’ as Debt Vote Looms - CNBC
American Default is sure
The concept of capitalism is spending beyond means by borrowing on assuming future flows, when it does not happen then defaulting, going to bankruptcy. This is what exactly many individuals are doing. Peoples are being lured into spending beyond their means. American in general are deep into debts apart from government debt.
The Biggest Types of Personal Debt
In today’s economy, massive consumer debt has crippled the personal balance sheets of individuals around the country, making a tough economy even tougher. With foreclosures on the rise and many Americans crippled by over-extended credit cards, personal debt is becoming a major player in the economic crisis. Payday Advances - $40 billion
A payday advance is a small, unsecured short-term loan, normally between $100-$500 with typical interest rates between 15-20 percent and maturities of about 14 days. However, because of the short term of maturities, APR for payday loans can be anywhere between 400 and 700 percent and, if not immediately paid in full, individuals can get themselves into serious financial trouble.
Small Business Loans - $68 billion
SBA Loans Oustanding (As of 2/28/09) 7(a) – 317,358 loans, $45.93 billion 504: - 52,217 loans, $22.08 billion
Farm Loans - $114.2 billion
Auto Loan Debt – $313.8 billion
Tax Debt Owed to IRS - $345 billion
Student Loan Debt Outstanding - $556 billion
Revolving Home Equity Credit - $577.8 billion
Revolving Consumer Credit Outstanding - $953.1 billion
Major Holders (in billions) Pools of securitized assets: $440.3* Commercial Banks: $382.0 Finance Companies: $55.8 Savings Institutions: $39.0 Credit Unions: $32.2 Non-Finance Businesses: $3.8 Residential Mortgage Debt Outstanding: $14.64 trillion
Breakdown of Total Outstanding Mortgages: One- to four- family residences: $11.03 trillion Nonfarm, nonresidential: $2.59 trillion Multifamily residences: $895.79 billion Farm: $111.15 billion
Biggest Holders of US Gov't Debt
This borrowing adds to the national debt, which has recently surpassed the $14 trillion mark and is rising every day. The amount of debt is quickly approaching the federal debt ceiling, a legal limit to borrowing which currently stands at $14.294 trillion. Much of that debt is held by private sector, but about 40 percent is held by public entities, including parts of the government. Here's who owns the most.
For the first time in recent history, Canada's holdings of US debt has broken into the top 15, surpassing Taiwan by about $3.6 billion in November 2010.
14. Hong Kong
US debt holdings: $138.9 billion
13. Caribbean Banking Centers
US debt holdings: $146.3 billion
US debt holdings: $184.4 billion
11. Oil Exporters
US debt holdings: $210.4 billion Included in the group of oil exporters are Ecuador, Venezuela, Indonesia, Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates, Algeria, Gabon, Libya, and Nigeria.
10. Insurance Companies
US debt holdings: $261.8 billion 9. Depository Institutions
US debt holdings: $269.8 billion
7. (Tied) United Kingdom
US debt holdings: $511.8 billion
7. (Tied) State and Local Governments
US debt holdings: $511.8 billion
6. Mutual Funds
US debt holdings: $637.7 billion
5. Pension Funds
US debt holdings: $706.4 billion
US debt holdings: $877.2 billion
US debt holdings: $895.6 billion
2. Other Investors/Savings Bonds
US debt holdings $1.458 trillion
1. Federal Reserve and Intragovernmental Holdings
US debt holdings: $5.351 trillion About a decade ago, the total government holdings were "only" $2.5 trillion.