Consumer lending

Seven Charts For Bullish Investors To Ignore

Wall Street still exudes widespread optimism that 2017 will provide another year of solid gains for stocks amid stable albeit unspectacular economic growth and only gentle interest rate rises. However, as The FT details, all is not well in reality, and the following seven charts will hearten investors of a more bearish persuasion...

S&P Futures Slide Ahead Of Bank Earnings

S&P futures extended their Wednesday decline, dropping in the overnight session with banking shares in focus ahead of results from JPMorgan and Citigroup. European stocks likewise retreated along with the dollar, while Asian shares were mixed.

12 Million Americans Are About To Get An Artificial Boost To Their FICO Scores

Tax liens and civil judgments soon will be taken off people’s credit reports, the latest move to omit negative information from consumer financial scorecards, in the process artifically boosting the FICO score for as many as 12 million Americans. "It’s going to make someone who has poor credit look better than they should," said John Ulzheimer, a former manager at Experian and credit-score creator FICO.

Consumer Credit Soars, Driven By Near Record Credit Card-Fueled Spending

After several months of tepid growth in the revolving consumer credit, i.e., credit card, space, the latest monthly report from the Fed revealed that Americans went on a credit card-funded shopping spree in November, when total revolving credit exploded higher by a massive $11 billion, the highest November increase on record, and the second highest of the post crash period.

Wells Fargo CEO John Stumpf To Retire Effective Immediately

The most anticlimiatic and predictable outcome to the biggest banking scandal to rock Wall Street in recent years, Wells Fargo;s fraudulent creation of 2 million (or more) fake customer accounts, has just concluded in the only possible way: with CEO and Chairman John Stumpf retiring.

UBS Debunks "Strong Consumer" Farce Saying Consumer Credit Cycle Is In "Later Innings"

"Our analysis...seems to support the thesis that while lending is extending to riskier consumers, the finances of those consumers are not materially improving. The recipe is likely to result in consumer delinquencies that will not fall in coming quarters, consistent with our broader thesis that the credit cycle is in the later innings."

Dan Loeb Compares Managing Money In 2016 To A "Game Of Thrones" Slaughter

"Watching Jon Snow’s epic “Battle of the Bastards” scene in the penultimate episode of this season’s Game of Thrones gives investors a sense of how it has felt to manage money during some periods over the past year. Surging enemies forming a seemingly  impossible perimeter, a crush of fellow soldiers on the field, arrows coming in overhead..."

Frontrunning: April 19

  • Early Warning Signs of Recession Flash Faintly in U.S. Jobs Data (BBG)
  • Who Needs Buybacks? One S&P 500 Variant Just Rallied to a Record (BBG)
  • The unpredictable new voice of Saudi oil (FT)
  • Saudi's Other Warning Makes Oil Traders Sweat After Doha Failure (BBG)
  • U.S. oil investors rush for protection at $35 as Doha talks collapse (Reuters)
  • Trump candidacy: Where some fear to tread others see a path to victory (Reuters)

Who Needs Helicopters? Draghi Plans "Fool-Proof" ECB-Backed Debit Card

Yesterday’s leaks confirm the ECB’s plans will effectively give Europe’s consumer lenders access to unlimited zero-cost finance – going far further than the free money showered on them by the multiple previous TLTRO financial packages. Under the proposed scheme, European banks have the option to issue their clients a new branded European Banking Union debit card.

The New "Big Short"? - Australia's Housing Bubble Is "In the Grip Of Insanity"

"The property bubble is everything to this economy and the country’s citizens, whether they know it or not, are 'all in'." Those who so to speak 'live inside the bubble' are no longer aware of its dangers. The mentality of Australians is generally well aligned with the country’s great weather – their outlook usually tends to be 'happy-go-lucky' and optimistic; but Australia’s citizens have far greater exposure to the bubble than is immediately obvious.

The Fed Passes The Buck: Blame Oil And China

Contrary to those blaming the Fed for causing stocks to fall by “raising rates” (which Joe Salerno reflects on here) we want to stress the fact that, in raising rates, the most that the Fed could do is unravel previously made mistakes. In other words, there is nothing praiseworthy in the first place about artificially propped up stock market levels. We have no interest in lauding the longevity of the bubble, because the bubble is the enemy of the healthy economy. The collapsing equity markets reveal where bubbles were formed and that our alleged prosperity is an illusion. And this is precisely what former Dallas Fed Chairman Richard Fisher stated in a conversation on CNBC last week when he confessed: “We frontloaded a tremendous market rally to create a wealth effect.”