Saturn

Deplorables, Dreamers, & America's Attention Deficit Disorder

"Deplorable as they may be, sunk in job loss, anomie, opiate addiction, obesity, and tattoo collecting, the Trumpsters have a legitimate case that they’ve been shoved out of work and livelihoods by immigrants both legal and illegal, and nobody should be surprised at the animus this generates."

Frontrunning: September 15

  • Dollar leaps versus yen, pound at highest since Brexit result (Reuters)
  • Several hurt in 'terrorist' incident in London (Reuters)
  • North Korea Puts Guam in Range With New Missile Launch Over Japan (BBG)
  • U.N. Security Council to meet after North Korea fires another missile over Japan (Reuters)

DeSoto To DeLorean - 14 Defunct Car Brands (& How They Failed)

Automobile enthusiasts around the world know brands like Studebaker, Plymouth and Packard, but you’d be hard-pressed to find any of these on the roads today. Former powerhouses in the American auto market, they have since become beloved by collectors, but lost to the general public.

Doug Casey Explains Why College Is A Waste of Money

"... the cost/benefit ratio of going to college is already so out of whack that the whole system has to change radically. A college degree, even now, is of only marginal value; most everybody has one. And things that everybody has are devalued"

"Lift-Off" Lies And The Fed's Reputational Risk

Every Fed watcher’s favorite word these days is “lift-off”. As if the Fed’s first rate increase, whenever that comes to pass, is the ignition of some giant Saturn V rocket that will inexorably carry interest rates up, up, and away. Please. This is Narrative creation … really, Narrative abuse … of the first order. The next time you read or hear someone use the word “lift-off”, I’m begging you to remember Jim Mora’s classic press conference when he was asked about the Colts’ chances of making the play-offs, because it’s a dead ringer for what Janet Yellen is saying in her heart of hearts.

Meet The "Lone Engineer" GM Is Blaming All Its Troubles On

Back in 2011 Goldman, when the FDIC-insured bank holding company with no deposits, was slapped with the biggest at the time SEC penalty for shorting CDOs it had sold to clients, it started a trend of scapegoating all its evils on a lone, then 20-something individual, Fabrice Tourre, who seemingly had "worked alone" and whose actions were not supervised by anyone: the chain of responsibility started and ended with him. Naturally, nobody went to jail. A few years later, stuck in the biggest scandal of its post-bankruppcy existence involving over 20 million recalls in just the first 6 months of 2014 alone, GM has decided that what worked for Goldman should work for it too, and as the WSJ reports, is "pinning of a decadelong failure to recall defective cars on a lone engineer." Meet Raymond DeGiorgio, said lone engineer.

Following Latest Recall Shocker, GM Has Recalled 56% More Cars In 2014 Than It Sold In 2013

Over the weekend we titled our summary of GM's unprecedented avalanche of recalls so far in 2014 - the year in which the company's criminal practice of covering up its faulty products became a congressional scandal -  as follows: "GM Set To Surpass Total Recall Record This Year." Three days later we are happy to report that while Detroit, we not only have a big recall problem, we also have a new record, after moments ago GM just announced another 4 recalls affecting 2.4 million cars. This brings the total number of vehicle investigations since the start of the year to 35, and with today's four latest fiascos, has initiated a whopping 29 recalls. More importantly, this also means that the number of domestic recalls rises to 13.6 million, smashing the previous record of 11.8 million recalls in 2004, and brings the number of global recalls to 15.2 million: or a stunning 56% greater than the 9.7 million cars GM sold in all of 2013!

GM 'Rocked' By "Record" DoT Penalty - Fined 0.02% of Revenue

$35 Million - that's what the Chevy Cobalt "ignition switch recall" probe fines cost GM based on The Department of Transport's maximum penalty... or 0.02% of their last 12 months revenues:

  • GM TO PAY UP TO $35M PENALTY ON COBALT PROBE, DOT SAYS
  • DOT:CONSENT ORDER REQUIRE GM TO SUBMIT REPORTS, MEET W/ NHTSA
  • DOT SAYS GM TO MAKE INTERNAL CHANGES TO REVIEW OF ISSUES

So the tax-payer bailed-out firm is paying the government a de minimus fine for killing taxpayers? (and the DoT now urges Congress to raise the maximum penalty to $300 million) Full statement below