LTV 137% – In Unprecedented Development, Lenders Now Take Record Losses On Every Used Car Loan

18 comments

Posted on 1st July 2015 by Administrator in Economy |Politics |Social Issues

, , , , , ,

This entire teetering edifice is built upon a towering foundation of un-payable debt. Look no further than the story below. Bankers making loans that will guarantee them future losses because they know the Federal Reserve and puppet politicians will bail them out at your expense. The ignorant masses will never open their eyes because they live in a land of delusion and like driving Cadillac Escalades while the party continues.

Tyler Durden's picture

This wasn’t supposed to happen.

With the US consumer hunkering down in 2015 and barely spending more than in the comparble period last year, the only silver lining had been auto sales driven almost entirely by access to cheap credit; in fact, as the chart below shows while revolving credit has barely budged from its post-crisis lows with consumers still failing to fall for the “recovery” narrative, Uncle Sam’s zero cost loans which are now reaching well over 6 years in average duration have provided a generous support for the US auto industry. In addition to the bubble in student loans, car loans have been the only confirmation that the US consumer – that driver of 70% of the US economy – is still alive.

 

So in a world in which one can buy cars now and worry about the costs later, much much later, auto sales should have been soaring as they have been in recent years, right?

 

Well, not for GM, which moments ago reported a surprising drop in June auto sales, which declined 3% M/M to 259,353 from the prior month, driven by an 18.1% plunge in Buick sales, with Chevy and Cadillac also posting declines, despite expectations of a 3% headline increase. This even as GM announced pickup deliveries were up 33% with the Silverado up 18%. Curiously, GM’s main domestic competitor, Ford, reported a 9% drop in F-Series sales in June.

(more…)

ON THE EDGE OF PANIC

29 comments

Posted on 29th June 2015 by Administrator in Economy |Politics |Social Issues

, , , ,

It was a bad day in the market. It was down 2%. That’s nothing in the big picture. The market is up 300% since 2009. A 2% move shouldn’t be a problem in a normal market. But, we have an extremely overvalued abnormal market, propped up by excessive levels of debt and hundreds of billions in corporate stock buybacks. These CEO titans of industry are driven by greed and personal ambition. They aren’t smart enough to grow their businesses, so they have bought back their stock at record high prices in order to boost Earnings Per Share and their own stock based compensation packages.

They did the exact same thing in 2007, just before the last crash. These spineless Ivy League educated whores always buy high and sell low. In 2009, when their stocks were selling at bargain prices, they bought nothing. They are gutless front runners with no vision, leadership skills, or sense of morality. With markets in turmoil, these slimy snakes will hesitate to buy back their stock. Fear will overtake their greed. This form of liquidity for the stock market will dry up in an instant.

(more…)

QUOTES OF THE DAY

0 comments

Posted on 1st July 2015 by Administrator in Economy |Politics |Social Issues

“If ever you find yourself environed with difficulties and perplexing circumstances, out of which you are at a loss how to extricate yourself, do what is right, and be assured that that will extricate you the best out of the worst situations. Though you cannot see, when you take one step, what will be the next, yet follow truth, justice, and plain dealing, and never fear their leading you out of the labyrinth, in the easiest manner possible.

The knot which you thought a Gordian one, will untie itself before you. Nothing is so mistaken as the supposition, that a person is to extricate himself from a difficulty, by intrigue, by chicanery, by dissimulation, by trimming, by an untruth, by an injustice. This increases the difficulties ten fold; and those who pursue these methods, get themselves so involved at length, that they can turn no way but their infamy becomes more exposed. It is of great importance to set a resolution, not to be shaken, never to tell an untruth.

There is no vice so mean, so pitiful, so contemptible; and he who permits himself to tell a lie once, finds it much easier to do it a second and third time, till at length it becomes habitual; he tells lies without attending to it, and truths without the world’s believing him. This falsehood of the tongue leads to that of the heart, and in time depraves all its good dispositions.”

Thomas Jefferson, Letter from Paris, August 19, 1785
“He promises you illumination, he offers you knowledge, science, philosophy, enlargement of mind. He scoffs at times gone by; he scoffs at every institution which reveres them. He prompts you what to say, and then listens to you, and praises you, and encourages you. He bids you mount aloft. He shows you how to become as gods. Then he laughs and jokes with you, and gets intimate with you; he takes your hand, and gets his fingers between yours, and grasps them, and then you are his.”

J. H. Newman

THE TRANSFORMATION OF HUMANITY NOW IN PROGRESS, i.e. Go F**k yourself

9 comments

Posted on 1st July 2015 by T4C in Social Issues

I guess this counts as TRULY taking care of yourself.

 

You’re Macrostomum hstrix

by Karl Denninger

I’m quite serious.

After nearly 10 years of writing on the various schemes and scams that have and continue to destroy your financial and personal future I have observed only commentary in response including (1) the law will simply be more-ignored (yet they won’t do anything about it), (2) bleating that if you just vote for {democrats|republicans|martians|the-man-with-a-tardis} it will all be fixed despite 30+ years of evidence to the contrary, (3) you should buy gold (which will be $50,000/oz “soon”), (4) you should read books written by men intended to control more men using the threat of eternal hellfire as their premise (how come nobody can prove it?) or (5) just BTFD and you’ll get rich (how’d that work in 2008?)

Well, citizens, after much reflection I must accept that you’re Macrostomum hstrix.

Why?

You quite-clearly have been ****ing yourself in the head.

*********************************************************************************

1

 

Flatworm uses ‘hypodermic penis’ to inject sperm into own head

By Philip Oldfield

 July 1, 2015

The pursuit of reproductive success in the animal kingdom sometimes calls for extreme measures. But few creatures can match the hermaphrodite flatworm, which scientists have discovered can reproduce by injecting sperm into its own head.

The tiny aquatic worm, Macrostomum hystix, is able to self-fertilise because it produces both eggs and sperm. Although it prefers to reproduce with other flatworms, when no mating opportunities are present it resorts to using its needle-like penis to inject sperm into its own head.

(more…)

Greece: The Problem and the Solution

10 comments

Posted on 1st July 2015 by Administrator in Economy |Politics |Social Issues

,

 

Latest Developments

Alexis Tsipras has sent a letter to Jeroen Dijsselbloem of the euro-group (you can download the letter here, pdf), in which he requests a separate bailout from the ESM, essentially proposing that the ESM take over Greece’s liabilities for a period of two years. Unsaid, but implied, is that this would result in the referendum being recalled. More likely it is just a ploy to enhance Syriza’s chances of obtaining a “no” vote in the referendum.

 

Image via dreamstime.com

 

Rumor has it that this letter was sent in the wake of “infighting at Syriza” over whether or not to hold the referendum. Reportedly some in Syriza fear that there is a risk that the “yes” vote will prevail and force Tsipras to resign and call for new elections. Anyway, these are just rumors, if not entirely implausible ones. The letter Tsipras sent in any case didn’t change anything, because the stance of the euro-group is that nothing new will be decided until after the referendum.

What struck us as far more interesting however, is how far Angela Merkel was apparently prepared to go in order to accommodate Greek demands. She let this slip when briefing her government coalition partners in Germany, the Social Democratic Party (SPD). She didn’t appraise her colleagues in her own party of this, apparently fearing their wrath. As Der Spiegel reports in its German language edition:

(more…)

OBAMACARE ADDS $1.1 TRILLION TO THE NATIONAL DEBT & INCREASES TAXES BY $800 BILLION

12 comments

Posted on 1st July 2015 by Administrator in Economy |Politics |Social Issues

, , , , , , ,

The CBO, whose estimates are as accurate as a Tim Tebow pass, shows that Obamacare increases deficits by a total of $1,156 billion over its first 10-year period.  This is supposedly offset by cost savings of $879 billion (predominately $802 billion saved in Medicare) and unrelated tax increases of $631 billion (predominately $346 billion in investment income surcharges). These government accountant weenies always underestimate the costs and overestimate the savings. The cost of Obamacare will soar past $2 billion. The States are already being overwhelmed by the increase in Medicaid enrollees, far above the estimates made by the Obamanistas. This bloated abortion of a healthcare plan will accelerate the destruction of our economy.

problem

Everyone of these taxes will be passed along to you in the form of higher prices. I thought Obamacare was supposed to save every family $2,500 per year. I’m still waiting. How about you?

ocip

(more…)

What if Gold Is Declared Illegal?

12 comments

Posted on 1st July 2015 by Administrator in Economy |Politics |Social Issues

, , ,

The Beginning of the End

Over the weekend, the lines in Greece stretched along the street. Around the corner. Down the block. Lines to get cash. Lines to buy gas. Lines of people eager to get their hands on something of value. Food. Fuel. Cash. Pity the poor guy who was last in line …

… the poor taxi driver, for example, standing behind 300 other people, trying to get 200 lousy euros out of an ATM. Like a tragic nightclub customer … among the last to smell the smoke. By the time he headed for the exit, it was clogged with desperate people, all struggling to get through the same narrow door at the same time.

 

last in lineBeing the last in line usually means you have waited too long.

Image via archives.gov, Al Capone’s Soup Kitchen, Chikago 1931


Remember: When a bear attacks in the woods, you don’t have to be faster than the bear. You just have to be faster than at least one other hiker…

Likewise, you don’t have to be the first one to get your money out of an ATM. You just want to be sure you get your money before the machine runs out of cash. And when a bear attacks Wall Street, you don’t have to be the first to sell. But you definitely don’t want to be the last.

 

storming the bankPeople storming a bank in Shanghai in December 1948. The paper currency had just crashed, and the Kuomintang decided to make a distribution of 40 grams of gold per person. People desperately wanted to obtain their gold before the banks ran out.

Photo credit: Henri Cartier-Bresson

 

(more…)

HE LIED, 150 DIED

14 comments

Posted on 1st July 2015 by SSS in Social Issues

I am not against the manufacture and sale of psychotropic drugs. These medications have helped millions of people deal successfully with mental disorders ranging from mild depression to severe psychoses such as schizophrenia. What I am against is the increasingly wholesale prescription of these drugs to those under the age of 25, when the brain is still maturing. This must be done very carefully to insure these young patients are, per a Food and Drug Administration warning, regularly monitored for behavioral changes by both the attending physician AND caregiver(s) of the patient.

What do I mean by “wholesale prescription?” Here’s an example. The granddaddy of anti-depressants on the market today is Prozac, a product of Eli Lilly. It first came on the market in 1989. In 2010, 24 MILLION prescriptions for Prozac and its generic cousin (fluoxetine) were written just in the U.S. alone. Wow, from zero to 24 million in just 21 years. And Prozac is no longer the most prescribed anti-depressant; it is #3. The #1 and #2 spots are held by Zoloft/generic and Celexa/generic, respectively. Do you think that these potentially dangerous, to those under 25, psychotropic drugs are being over prescribed? I do. And they are wrecking havoc both here and abroad.

Andreas Lubitz was born in Germany on December 18, 1987 and died by suicide on March 24, 2015. In 2009, at the age of 21, he was diagnosed with severe depressive disorder and treated with psychotherapy to include taking two powerful anti-depressant drugs, Mirtazapine and Cipralex (aka Lexapro). Both of these drugs qualify for the following warning by the U.S. Food and Drug Administration, quoted verbatim from its website:

(more…)

U.S. CONSTITUTION (2015 REVISION)

14 comments

Posted on 1st July 2015 by Administrator in Economy |Politics |Social Issues

Political Cartoons by Gary Varvel

Via Townhall

HOW COME THE MSM NEVER SAYS IT WAS 50 BLACK THUGS RAMPAGING?

34 comments

Posted on 1st July 2015 by Administrator in Economy |Politics |Social Issues

, , , , ,

Did you ever notice how all MSM stories describe these savage rampages as being done by teens or youths? They never mention that all of these assaults are conducted by packs of wild feral black teenagers. All of them. No exceptions. They could all be Obama’s sons. Remember – black lives matter. They are oppressed, so they have the right to punch workers in the face, drag old people off their motorized scooters, and trash any store they feel like. How dare we white devils expect civilized behavior from feral dogs. Doesn’t Kharron Nathan Green look like he could be Obama’s son? I bet he is an honor student. He’s just misunderstood.

Do you think the MSM would have reported that it was 50 White youths beating up black people?

 Kharron Nathan Green

Report: Macon Wal-Mart mob wanted to see how much damage it could do

By JOE KOVAC JR.

Surveillance video of a wee-hours ruckus at a Macon Wal-Mart on Sunday shows a teenager race inside flashing gang signs ahead of a mob of four dozen or so people who burst in and smashed merchandise.

The commotion, which caused an estimated $2,000 in damage, appears to have been planned.

Some in the crowd also snatched a man, apparently a shopper at the Zebulon Road store, from a motorized shopping cart and dragged him to the floor, Bibb County sheriff’s officials said Monday.

The vandals, said to number between 40 and 50, sprinted down the store’s main aisle about 1:50 a.m. Sunday, “destroying merchandise displays and items,” a sheriff’s deputy’s report of the incident noted.

Floors in parts of the store were “coated with broken merchandise,” the report added. “The length of the store from front to rear was lined with items which had been shattered, destroyed, turned over and thrown about.”

When sheriff’s deputies got there, the crowd “began to flee into many different vehicles and leave the scene,” the report said.

The store, next to Lowe’s, is just east of Interstate 475 in one of the area’s most frequented shopping districts.

The teenager seen leading the rushing horde of young men and women told a Wal-Mart employee “that this was a planned event … to see how much damage they could cause,” the sheriff’s report said.

The teen, identified as 17-year-old Kharron Nathan Green, of Ashton Drive in northwest Bibb County, was arrested when he returned to the store to retrieve his cellphone.

Green was jailed and later released on bond after being charged with inciting a riot and second-degree damage to property.

(more…)

The Wizard of Oz and the Case for a Later Liftoff

2 comments

Posted on 1st July 2015 by Administrator in Economy |Politics |Social Issues

Connecting the Dots: The Wizard of Oz and the Case for a Later Liftoff

By Tony Sagami

2006.

The last time the Federal Reserve raised interest rates was way back in June of 2006. Moreover, the Fed has kept interest rates near 0% since 2008.

But after the June 17 FOMC meeting, just about everybody—and I mean everybody—is assuming that the Federal Reserve will raise interest rates later this year.

The Fed has been so convincing that the market sees a 34% probability for a rate hike by September and an overwhelming 88% probability for a rate hike before or in December.

Heck, even Fed Chairperson Janet Yellen has said that she expects the Fed to raise rates in 2015.

Frankly, I don’t trust the Fed to do anything right, so my prediction is that Janet Yellen and her Fed buddies should not and will not raise interest rates this year.

Hey, I’m not the only person who thinks so.

(more…)

QUOTES OF THE DAY

0 comments

Posted on 1st July 2015 by Administrator in Economy |Politics |Social Issues

, ,

“The Brussels Eurocrats are in the image of Plato’s Philosopher King, only there are too many Kings all believing themselves to be the most capable ruler. For two years I have written that the European leaders feared referenda more than anything, for direct democracy was an affront to the wisdom of the self-anointed elite. The European project was too important to be left to the capricious voters…

The ruling elites, the Davos Gang, are not really financially astute for the Greeks could have kicked the proverbial can down the road for a mere 7.5 billion euros. Today’s market response to the new uncertainty probably wiped 500 billion in value off global equity markets and raised borrowing costs for the less credit-worthy countries of peripheral Europe. Egomania, like a membership in a quality credit card company, has a price to be paid…

It is not economic contagion but political contagion that strikes fear in the heart of Angela Merkel.”

Yra Harris, Looking Back on the European Dystopia

“Our main challenge, since the global financial crisis, has been to make rapid (or at least as rapid as possible) progress toward achieving these objectives. While it has taken a long time, and extraordinary monetary policy actions, the U.S. economy is now close to full employment…”

Stanley Fischer, Vice Chairman Federal Reserve, Monetary Policy In the US and Developing Countries, 30 June 2015

“Glorify a lie, legalize a lie, arm and equip a lie, consecrate a lie with solemn forms and awful penalties, and after all it is nothing but a lie. It rots a land and corrupts a people like any other lie, and by and by the white light of God’s truth shines clear through it, and shows it to be a lie.”

E. H. Chapin, Living Words

 

Who Will Be the Last to Crash?

6 comments

Posted on 30th June 2015 by Administrator in Economy |Politics |Social Issues

Who Will Be the Last to Crash?

lasttocrash

This is the question that astute investors are forced to ask themselves these days. No reasonable person believes that a system of ever-expanding debt can resolve painlessly. It simply cannot happen… not, at least, until 2+2 stops equaling four.

But the international money system, while deeply interconnected, can implode in sections. In fact, it’s highly unlikely that it will crash as a single unit.

So, if you have significant moneys to invest, you end up coming back to our question: Who will be the last to crash? Once you decide that, you can concentrate your assets in that place, hoping to come through the crash with at least most of your value intact.

Let’s look at several aspects of this:

#1: Background statistics:

  • World debt is upwards of $200 trillion, and growing steadily. World GDP is $70-some trillion, only about a third of the debt. This debt will not be paid back. Massive amounts of debt will have to be written off in losses.
  • US debt is north of $18 trillion. (Amazingly, *cough*, it hasn’t changed in months *cough*.) Forward promises are north of $200 trillion, meaning that a child born today is responsible to repay $625,000. And since roughly half the US population pays no income tax… and presuming that this newborn will be a member of the productive half… he or she is born $1.25 million in debt. Such repayments will never happen. Most of those debts will not be repaid.
  • Japan is worse off than the US. The UK is bad. Many EU countries are worse.

These numbers, by the way, are ignoring more than a quadrillion dollars of derivatives and lots of other monkey business. (Rehypothecation, *cough*, *cough*.)

#2: No one wants to rock the boat.

Informed men and women understand that the entire system is unstable. Probably a majority of them are simply hoping that it holds together until they die. A few dream that magical new inventions will kick-start the system into a new orgy of debt, blowing an even larger super-bubble that lasts through their hopefully longer lifetimes.

But informed people also know that the system stands almost wholly upon confidence. If the sheep get scared enough to run away, the whole thing ends… and no one is ready for it to end.

So, heavy investors speak in soothing tones. They don’t want to spook the masses.

(more…)