by Karl Denninger, Market Ticker:

…. a recession when the stock market is at all-time highs and the con-suuuuumer is strong.

Uh huh.

How’d that work out in 2007?  The stock market was at all-time highs.  The consumer was extraordinarily strong.

And?

Further, is the con-suuuuumer actually “really strong”?  How’s that student debt doing?  Speaking of which, how is credit card debt doing?

Nothing wrong here, right?  That’s not at all time highs, yes?  Oh wait….

How’s that compared to median income?  Has median income gone up by a factor of four since 2000, as has credit card and other revolving debt?  No?  Well?

Have “zero interest rates” made for lower credit card interest rates?  No?  Well?

How about the percentage of workers who live paycheck-to-paycheck?  That’s 8 out of 10.  Worse, 10% of those with salaries over $100,000 are in the same boat!

Gee, you think the con-suuuuuuuumer is strong eh?  Well maybe you can tell me about that in the above context…. exactly how strong?  You mean the credit card hasn’t been cut off yet?  The average American owes over $6,000 on his or her credit card!  Worse, 55% of Americans cannot pay their card bill off at the end of the month; they roll it over.

Much worse those who are in the 35-54 age bracket have an average credit card debt of more than $8,000!

Why does someone with over $150,000 in income carry over $10,000 in credit card debt — the highest interest-rate debt there is?  They still aren’t living within their $150,000 salary!

Worse, however, are those people making less than $25k carrying $3,000 or more in same.

Or is it?

Well, not really.  Think about it; on a percentage basis it’s not that different, is it?  What’s different is the alleged discretionary income of the $25,000 income person is much lower than the person making $150,000.

At least that’s what you’re told.

What if it isn’t true — because it certainly appears it isn’t true from these statistics.

There is exactly zero reason to pay that sort of interest with $150,000 worth of income unless you have to.

This data certainly implies that you have to.

Remember folks — it does not matter how much you make in dollars; what matters is what percentage of what you make you get to keep after all mandatory expenses.

No, the con-suuuuumer is not strong.

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