A few weeks ago, I discussed the fact that the media has been fabricating signs of recovery in certain cities across America.
Close to half of the cities on the road to recovery (according to the media liars) are located in none other than the state of Texas.
As you will recall, I set the record straight on this propaganda. I
ran across another piece several days later and couldn't resist emailing the hack reporter to set him straight.
But I failed to mention a couple of things.
For many years, Dallas has had one of America's lowest consumer credit ratings.
Furthermore, as the report from Experian discusses, Dallas is second in the nation in consumer credit card debt per person, coming in at a whopping...are you ready? .....
$26,599! That's an average figure per person!
Anyone who has lived in Dallas for a period might not be too surprised at such a high level of credit card debt.
You see, everything is big in Texas - the hair, the trucks, the guns, the bellies, the boobs, and of course the spending habits. And they certainly don't call it the Big D for nothin.
Dallas is somewhat of a financial powerhouse, with the Dallas Fed as well as a host of huge hedge funds, most of which are clueless of course (some things don't change whether you're in NYC or Dallas, Texas). Overall, it's a very wealthy city; that is, for the few of the old families made rich from the old oil days. Along with a a handful of billionaires, Dallas has a big pool in the 9-figure club.
And Dallas certainly isn't lacking in the young "babes" department. Common law, old men with money, a lineup of gentleman's clubs difficult to rival anywhere in the U.S., and an endless supply of gold-diggers help explain Dallas' eye-popping divorce rate.
But for all others lacking the money to play the game, they spend what they don't have. In short. Dallas has a big supply of $30,000 millionaires looking to be part of the action.
The report from Experian lists Seattle as the city with the highest credit card debt per person, at $26,646. This is a bit more acceptible due to the much higher cost of living, as well as higher salaries.
Experian reports that Seattle residents have a good history of repayment or fewer late payments. I know from history that Dallas residents have a poor repayment history (explaining in part, their poor credit score).
But what's most shocking is that the 65% of the metropolitan areas in the U.S. have an an average credit card debt of $24,775.
It's clear that Dallas bears a close resemblence to the path taken by the U.S. - excessive spending, leading to a mountain of debt. As a result, anything positive from the Dallas economy needs to be adjusted for the debt spending, similar to the case with Washington's approach. In both cases, I see no improvements to the economy even with the high debt levels. After adjusting for debt, things look really bad.
I don't know whether or not you have any credit card debt, but let me give you some advice. If you do, you had better pay it off and keep it that way.
One of the best ways to put money in your pocket while increasing your intelligence, quality of life and becoming a more successful investor is to CUT THE CABLE. No TV. Cutting the cable is likely to save you anywhere from $500 to $1000 per year; a decent chunk to add to an IRA. Others might want to use that amount to buy a subscription to the AVAIA investment newsletter. And of course, by cutting the cable, you won't be subjected to the trash and misinformation.
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