• dazzak
    02/11/2016 - 10:54
    Because so much is riding on what so few decide,once the faith in the Central Banks fail, the chances of us getting out of this diminish every second...

Home Equity

Tyler Durden's picture

"How Bad Can Texas Get?" Goldman Answers





As we put it on Friday, "the Texas recession is only in its early innings," because we are just now beginning to witness the bankruptcies and shut-ins that will soon become endemic and sweep across the entire US oil patch as revolvers are reigned in and Wall Street suddenly refuses to finance uneconomic producers' funding gaps. So how bad can things get in Texas, you ask? Goldman has ventured a guess.

 
Tyler Durden's picture

What Benefits To Savers? Banks Rush To Hike Prime Rate To 3.50%, Forget To Increase Deposit Rate





Someone forgot to give the banks the memo that the Fed's first rate hike since 2006 was supposed to, at least on paper, benefit the savers of America and not so much the, well, banks.. Because the ink hadn't even dried on the Fed's statement and one after another banks revealed that they would promptly boost their Prime lending rate from the current benchmark of 3.25% to the new Fed Funds-implied prime rate of 3.50%.

 
Tyler Durden's picture

Here's Why Housing Must Be Propped Up





If housing tanks, the last prop under the veneer of middle class wealth collapses. No wonder the Powers That Be are so desperate to prop up housing. But the bubbles and busts they've engineered are integral to credit/asset booms; their goal--a steady, permanent rise in prices that never falters--simply isn't possible.

 
Gold Standard Institute's picture

The Cotton Candy Market





If you borrow cash then it’s not income. No one in his right mind borrows to buy consumer goods... But what if someone else borrows, is that your income?

 
Tyler Durden's picture

The Table Is Set For The Next Financial Crisis





Some people will never learn... ever. What is happening today is nothing more than rearranging the deck chairs on the Titanic. The iceberg has been struck, we’re taking on water, and this sucker is going to sink. Game Over.

 
Tyler Durden's picture

The Destruction Of Real Estate Fundamentals





Housing is a very important component of any economy, and often an indicator of the well-being of a society.  In the US, housing has been deteriorating since the sub-prime crisis.  The changes are not only cyclical but structural.  Past experiences need to yield to an objective analysis of where we are heading.  Here is the way we see it...

 
Tyler Durden's picture

Subprime Auto Loan "Titan" Proclaims There's Nothing To Worry About





"in the 1990s, subprime borrowers typically were offered four-year car loans... Now, the standard is six years, partly because wages haven’t kept up with vehicle prices... I think that’s a good thing,... Unfortunately it seems to be painted as something bad, and I’m not sure why.”

 
Tyler Durden's picture

There's Something Wrong With The World Today (Hint: 1995)





Trillions upon trillions in “stimulus” and the FOMC is left, pathetically, fighting for the distinction of “it’s not as bad as it looks.” That would seem to make this the most costly economic age ever conceived, with global implications that are just now starting to be felt as whatever faith was leftover from 2008, wrong or right, wears off all over the world. That is a highly combustible deficiency, since the longer the global economy remains disorientated the more likely it is to experience not just recession but, since this is all still so leveraged (even more poorly this time), something potentially worse.

 
Tyler Durden's picture

Consumers Are Not Following Orders





Last week the government reported personal income and spending for April. After months of blaming non-existent consumer spending on cold weather, shockingly occurring during the Winter, the captured mainstream media pundits, Ivy League educated Wall Street economist lackeys, and Keynesian loving money printers at the Fed have run out of propaganda to explain why Americans are not spending money they don’t have. The corporate mainstream media is now visibly angry with the American people for not doing what the Ivy League propagated Keynesian academic models say they should be doing. An economy built upon the consumption of iGadgets, Cheetos, meat lovers stuffed crust pizza, and slave labor produced Chinese baubles, along with the production of enough arms to blow up the world ten times over, and the doling out of trillions to the non-productive class, is doomed to fail.

 
Tyler Durden's picture

Should Students Voluntarily Default On $1.3 Trillion In Debt?





"Over the last couple of decades, we have been engaged in an enormous national experiment, taking impressionable and often ignorant teenagers and young adults and seeing just how much student loan debt they can handle.There is a practical question at hand for people who feel as if they are in over their heads: Is it ever a good idea to try to beat the system by openly defying it and refusing to repay the debt that you willingly took on?"

 
Tyler Durden's picture

Land Of The Debt Serf: How "Auto Title Loan" Companies Ruthlessly Prey On America's Growing Underclass





“I look at title lending as legalized car thievery,... What they want to do is get you into a loan where you just keep paying, paying, paying, and at the end of the day, they take your car.

 
Tyler Durden's picture

Auto Sales Reach 10 Year Highs On Record Credit, Record Loan Terms, & Record Ignorance





May was a banner month for car sales and it's easy to see why. Nearly every conceivable metric for financing hit a record in Q1 according to Experian, including average loan term and average amount financed, suggesting the trillion-dollar US auto loan market has officially hit bubble territory. Meanwhile, the "cash out auto loan" is the new home equity loan.

 
Tyler Durden's picture

The Committee To Destroy The World





Now we can see the real tragedy of negative interest rates: they not only have the perverse effect of reversing the flow of time, but they demonstrate that borrowers are not acting with the good faith incentives normally associated with someone who needs money. Rather than paying forward, borrowers are paying backwards because they are effectively trying to return something they don’t want. Such an arrangement renders it impossible for an economy to grow. By destroying the temporal and moral structure of money, negative interest rates destroy the economy. When tomorrow cannot be paid, the current regime must fail. The only question to be determined is the form that failure will assume. This may sound like philosophy but it is cold, hard reality.

 
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