Housing Bubble

In what amounts to evidence that the subprime auto problem is indeed growing, The New York Fed's Quarterly Report on Household Debt and Credit (out today) shows that lenders extended more than $110 billion in auto loans to borrowers with credit scores below 660 over the past six months alone. 

"The equilibrium, for now, is QE infinity – but political risk could be the breaking point"...

Stripped of accounting gimmicks, real GDP growth shows economic collapse. And it will culminate in another stock market crash.

"My guess is that we will have negative rates in Norway before there will be any talk of QE"...

New car loans used to be 36 months (three years) and then 48 months (four years). Back when the economy was sane. Today, the typical new car loan is 72 months (six years). This is almost double the formerly typical length of a new car loan. But even that is not – apparently – enough to keep the music playing. Enter the eight-year loan... Are people really that stupid?

“The bubble may already have burst” for the most expensive homes, Barber said. Now, "36 percent of all properties currently on the market across prime central London are being marketed at a lower price than they were originally listed at, with the average reduction in price being 8.5 percent."

We wonder: just how much "more exponential" will China's "strike chart" have to get before everyone else finally notices?

The housing recovery without mortgage originations is coming to its inevitable conclusion.

People are going to be pissed off no matter who wins this election and that is a very important social dynamic that is vastly under appreciated by the majority of mainstream pundits and analysts out there. The truth is, the American public is tricked into thinking they disagree with each other on the big issues, when in reality there’s enormous overlap. Until we stop being tricked, the status quo will continue to suck the economy dry through their religious-like embrace of corruption and crony capitalism. Unfortunately, the people who could benefit the most from reading this post, will never see it.

"It is a bloodbath. We’re at the highest point of fear and uncertainty now.... God only knows what’ll happen if oil doesn’t rebound. I try not to let that penetrate my mind."

There were a few different stories coming out over the last few days that reveal the true nature of government and the apparatchiks who use disinformation, devious machinations, fraudulent accounting, and taxpayer money to cover up their criminality, lies, and the true state of the American economy. The use of government accounting tricks to obscure the truth about our dire financial straits is designed to keep the masses sedated and confused.

"Tent outside - full use of apartment - cheap - $90"

"I have a caravan in my driveway that I'm going to rent out."

“A predicted global meltdown passed without event. But there are enough warning signs to suggest we are sleepwalking into another disaster”.

"... we have more single short names than long positions in our book today. We have reduced our net exposure by nearly a third through sales and new shorts over the past few months."

The most anticipated economic release over the weekend was the early glimpse into China's manufacturing and non-manufacturing sectors via the two key PMI surveys released by China's National Bureau of Statistics, to get a sense if the slowdown across China is stabilizing or, as some have suggested, rebounding. It did not: overnight the NBS reported that the manufacturing PMI remained unchanged in October at 49.8 missing consensus estimates of a modest rebound to 50.0, its third consecutive month in contraction territory.