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Take Out A 7 Year Car Loan To Buy Stocks, CNBC Experts Advise
In what can only be described as a wanton display of absurdity, CNBC dedicated not one, not two, but three segments (and those are just the ones we noticed) to subprime auto lending on Wednesday producing, in the process, three of the most hilarious clips in recent memory.
There was Phil Lebeau with the latest numbers from Experian which show that average monthly payments hit a record high in Q4 at nearly $500 and the average amount being financed is up 4% Y/Y to nearly $24,000. It gets worse. Fully a quarter of new car loans carry terms of at least 73 months. That may sound bad, but Experian’s director of automotive finance Melinda Zabritski — the same Melinda Zabritski who last month said we are looking at a “remarkably stable automotive-loan market” — isn’t ready to pass judgement quite yet. "I haven't quite made up my mind on 84 month loans," she noted, although she did say she is “concerned.”
We also got a classic interview with AutoNation CEO Mike Jackson who notes that if you include leasing (which is of course different from buying, but why quibble over the details), loan terms are actually only 56 months. The rest of the clip can be summed up in three words: “Trucks, trucks, trucks.”
We saved the best for last. Watch below as Bill Griffeth and Kelly Evans host WSJ’s Jonathan Clements and Premier Financial Advisors’ Mark Martiak for a discussion on what we’re calling the car-stock arbitrage wherein you are (literally) encouraged to take out a 7 year loan with a rapidly amortizing asset as collateral in order to buy stocks.
Enjoy.
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go Goyim go!
How about take out a tripple mortgage and car loan ... go buy gold, move to other country and flip them the bird when they come asking for their money.
Or take out outrageous loans to pay for your education ... move to another country and equally flip them the bird when they try to find you.
At the end just go bankrupt ... everyone should take out huge loans and go bankrupt.
The theater of the absurb has not only gone mainstream, they have their own channel!!!!
"...the car-stock arbitrage wherein you are (literally) encouraged to take out a 7 year loan with a rapidly amortizing asset as collateral in order to buy stocks."
Then find yourself a nice 10th floor open window to jump out of once your stocks collapse and your payments comes due.
Subprime bitches. Sounds to me just like 125%LTV HELOCs used to buy stocks in 06/07. Remember those people? They are the fucktards who now get free Obama phones.
CNBC, like CNN and the rest of them, are criminal terrorist organizations and they should all be arrested and sent back to Israel where they com from.
The clock on the wall says three o'clock.
Last call.... for alcohol.
(The clock would be of the cuckoo variety)
The stocks will go bad before they repo the car.
Brilliant!
Diabolical!
(Why didn't I think of it?)
With this crap going it is becoming increasingly more stressful to BTFD's. This is going beyond stupid. But still think more ups are coming in the US Indices.
With God all will be forgiven.
All others pay cash.
At this point & time I think its about time to sell stawks and buy a nice used car.
Get Out Of There!
WOW! who has the time to pick through 100 movies to find that many 'Get out of there!' - Pretty impressive wish I had that kind of time to burn,.
Government employees when not watching porn.
There must be an app for movie database searches, for specific lines.
At this point & time I think its about time to sell stawks and buy a nice used car.
But that's un-American. You should be deeply and hopelessly in debt for the good of the country....
Or, take out your loan and buy a rifle, a shotgun, a handgun and $20,000 worth of ammo?
And training. Don't forget the training.
@Partysover Agreed, and it is even more stressful how this meme of the secular bull market is sure getting popular lately. I am sticking so far to my value roots, which is how I've made most of my profits over the years, but it is hard not to think too much about the possible opportunity cost. If someone is purposely spreading this meme, they are liable to cause a lot of hurt.
2 minutes to midnight...
.
http://thebulletin.org/timeline
Doomsday clock
GA Boy, it is almost like they are getting desperate to find the bigger fool to start selling the trash to. Still thinking more Ups though. If I recall the Dot Com bubble had to get horrendously bad before it burst. I think we are on the way but just not there yet.
Is there ANYTHING not absurd? We declare war to whom we just feel like for "democracy", we regard an east-european, oligarch-infested shitheap called Ukraine as a matter worthwile to start WW-this-time-with-nukes-III, we leverage our non-capital to obtain a car loan in order to satisfy (if not there: instill) - our bucket shop addiction, and we just feel great when after weeks with shockingly bad economic data an entirely farcical opinion poll by a absolutely irrrelevant data gatherer called "Markit" delivers a statistically insignificant uptick-blip in a completely irrelevant "indicator" called "PMI". HELLOOOOO? IS THERE ANYBODY?
+1 for George Thorogood reference
John Lee Hooker origin, also
So your theory is that the Joos own and control the media and the government. They just hire goyim mouthpieces to push their cruel agenda.
Well that makes a lot of sense.
Like the "theory" of gravity.
You all scoff, but this is precisely the RIGHT thing to do if you have very few assets that can be taken in a judgement. Borrow at sub prime rates, take max risk and maybe get lucky. If you lose, really the bank and taxpayers lose.
This is your chance to see how the banksters do it. Socialize the losses, keep the gains.
What bank will give you a bigger loan than the car is worth let alone the nightmarish depreciation? Doesn't even make sense.
More importantly, how does one short the auto sub-prime market?
Don't they make derivatives for that?
You can chose longer terms 72 mos. rather than 48 mos. 24000/48=500 a mos payments
or chose 24000/72=333 a mos payment and invest the difference in your 401k. The interest on a new car can zero or 1.9%. Makes sense "if" you think the market is a wise place to invest for the next 6 yrs. and you can make your payments either way.
f__k payments, CASH or fagetabotit
@ZeroNewz
That's a thoroughly entertaining thought process [that is probably a likely fantasy prospect for a lot of people around here]. To that extent, it's not surprising that your comment received a lot of green arrows [simply for the humor & irony]...
On the more sober side... Anyone who whould ever actually follow through with such a plan should NEVER criticize 'shysters' again, because it's an action plan that only a 'shyster' would engage in.
Yesterday I was making comments about 'hypocrisy'. Well ~ Here is a clear cut example of the 'CHOICE' to game the system, or not. Those who opt to game the system, but then criticize the system, would be hypocrites by definition.
the hypocrisy would only occur if they were criticizing the PEOPLE gaming the system. The system is already bankrupt long ago - hence the central bank monopoly money keeping it on life support.
I say get yours. I can assure you it will be small solace when someones gives you a pat you on the back for taking the high road and sinking with the ship, while you're in line begging for food tickets with the rest of the mob.
They can print money so the banks can loot and rob, let them run the ink a little for you too. We're all in this together, and the goose is already cooked... the fork is stuck. It's akin to grabbing a couple valuables out of the house before it burns down to the ground.
Everyone is free to choose what they feel is right for themselves.
<-- Junked here by hypocrites who SWEAR that hypocrisy doesn't exist
Personally, I will choose the path whereby I answer to myself...
Notwithstanding the prospect of lining up alongside huddled masses, my predominant thought will always be that 'NOBODY can ever take my self esteem away'. If you're not afraid of losing that, you're really not afraid of anything.
I would,nt call that hypocrisy , I,d call that guerrilla warfare.
That is SofaKing Funny JS..................but true
"no one could have seen this crash coming."
tulip mania 5.0
Santelli is already planning his spittle fueled rant about the "evil deadbeat car owners" and how they ruined these fine, patriotic banks and car companies with their idiotic 84 month loans.
I miss Santelli's rants but damn sure don't miss CNBC propoganda machine.
CNBC is for the people you can fool all the time.
Those are the ones you want to concentrate on.
uh, what happened to Santelli?
Of course deadbeats with no assets are to be blamed. It can NEVER be the bank's fault. In fact, it was the poor, with all their money and power, who wiped out Lehman Bros, Merrill Lynch, AIG, Morgan Stanely....should I go on?
careful with this sarcasm or advice, US Student Loans are not defaultable, and the US Taxman wants your money even when in foreign countries
Interesting how student loans became illegible for debt cancellation in bankruptcy, doctors were graduating with hundreds of thousands in student loan debt, get a job making big bucks, then declare bankruptcy to cancel out their loans. These guys are probably the ones who later wrote obamacare for the insurance companies.
Contribute enough to the campaign of the next clown-in-chief and pooof! car loans become illeligible for bankruptcy.
USA! USA! USA!
Interesting how student loans became illegible for debt cancellation
If I recall correctly back inte mid 90's WallStreet lobbied hard for this. Sole purpose to to collateralize the debts to be sold like CMO's. You can thank the pols, both sides of the isle, for this debacle,
It's when they became government backed. You can fuck private industry with BK7, but don't you dare fuck the government. See how that works? No? "Default" on your taxes, then get back to me.
And what Uncle Sam will do when you move abroad and renounce to your citizenship ?
I'm not an expert, or even a US citizen, but I understand that you need a different citizenship, first, and then you have to do a lot of IRS paperwork, first
Ghordius is right. Only a very light google study is enough to understand how completely tyranical the IRS is when it comes to expatriates. Alot of expats can't even get bank accounts in other countries becasue banks don't want to deal with FATCA. Google FATCA for your two minutes of hate today. Reading about it makes my blood boil. The IRS is evil,
The Congress that wrote and passed FATCA, along with the President who signed it are evil. The IRS are even worse.
Good luck getting citizenship in any country when they find out your an Nazi sorry American the rest of the worl loves you and don't forget that.
Americans seem to be getting set up as the fall guys, don't they? Too bad for us that we have no ability to control the people that are rampaging right now. We'll just have to take the righteous condemnation of the rest of the world, while they pretend their shitty slaveowners are better than ours.
I wouldn't think it matters. Even here in Canada - a girl skipped town on her student loans (though these were governmnet issued by OSAP) a while back. They hunted her down to eastern Europe and forced her to repay.
Most governments have reciprocal agreements these days, which means you have nowhere to run and hide unless you change your identity (shades of Jason Bourne?).
For the most part, banks and governments are one entity these days.
What if all of our college graduates join ISIS? I'm sure they offer some kind of debt jubilee.
Death is the ultimate jubilee.
On the bright side, if you have no "income" then you don't have to pay Federal Student Loans back.
Also, if you have a friendly judge (somehow) the loans are still cancellable under a hardship clause. It's very unlikely that anyone will be in trouble for ignoring Student Loans unless they keep playing by the rules, paying taxes, and working a chump job for "income".
Turn on, tune in, and drop out.
"On a long enough timeline..."
PLEASE!!! You guys throwing around this idea of taking out a loan and moving to another country and defaulting need to understand that it is all in the presentation. You are "diversifying your global presence and strategically defaulting"..it make you sound important and they will stop hounding you
We need 125% car loans!
Yeah, and interest-only! Just until I can flip this sucker.
Flipping a house is significantly different from flipping a car. BOOM!
ZeroNews wrote:
"How about take out a tripple mortgage and car loan ... go buy gold, move to other country and flip them the bird when they come asking for their money.
Or take out outrageous loans to pay for your education ... move to another country and equally flip them the bird when they try to find you.
At the end just go bankrupt ... everyone should take out huge loans and go bankrupt."
Not so easy anymore.
Just ten years ago Thailand welcomed Americans with open arms--today unless you have an uber (read hundreds of thousands invested) visa, you'll find that you have to do 3 month visa runs (out of country and then back in.)
The reality is that many, many countries no longer want American expats.
(Unless they are really, really loaded)
Consider that anyone in the world can buy US land, farmland, houses. Try that in other countries--Thailand (no), Philippines (no)...
Btw the elite took away the option of bankruptcy (from a practical point-of-view) in the changes to bankruptcy law in 2005.
You are a serf now--get used to it, or figure out how not to owe anyone. (Which is darn near impractical (rent/license/registration/gas taxes, property taxes...and so it goes...
Oh, and try to bring even gold coins to Phils or Thailand... can you say goodbye? They will be seized.
Virtually impossible to BK out of student loans
When in doubt, ask yourself: "What would Snowden do?"
The irony here is that everyone is taking out outrageous loans and, as everyone here knows, they will NOT be able to pay them back given the stats on disposable income across income classes. For the last 40 years [count em'] all disposable income has been transfered to the 1% income class. Statistically, the loans will not be paid back and are evidence of a system wide Ponzi machine that pumps & dumps subprime loan schemes on the markets at regular intervals. Each and every quarter produces new subprime schemes to keep inflating the dark pool derivatives universe of $1.5 quadrillion in Petrodollars.
all seeds are set for the crash of all times
Sorry, you are wrong and there will be no crash. Instead, the "Seeds" HAVE BEEN SEWN FOR A "Debt Jubilee"-----the responsible will be continually screwed, rest assured. The responsible said that the markets were corrupt and too high---they became more corrupt and went higher. The responsible said save your money, not spend it----the rewards went to those who spent, not saved. The responsible said debt was unsustainable and planned according----the debt continued to rise.
In the end, the responsible citizens will continue to lose---REST ASSURED. Debt enslaves, and the oligarch’s want slaves, so they will continue to reward that behavior with printed out of thin air fiat that an ignorant, foolish population blindly trusts to buy their "Shit" on credit.
For the responsible, the game is played as "heads they win, tails you lose".
When the unsustainable is no longer sustainable, there will be debt forgiveness, more restructuring, or a jubilee---whatever it takes to keep the masses enslaved and dumbed down on their opiate of choice.
interesting concept, that of the debt jubilee. particularly if you look into the details. the main reasons for debt jubilees, in the ancient times when they were popular and often done, was... collateral
because people were used as collateral. as in: I'll take a loan from you, and this son or daughter of mine is the collateral. default meant... slavery. literally
further, no debt jubilee was ever done for commercial debt, and it involved nearly never private land. usually when land was given back, it was tribal land
so if you really believe in a future debt jubilee coming, then the best guess is probably that if will involve... US Student Debt
Maybe not an explicit debt jubilee...but a gov't program to discharge student debt if you meet certain criteria. In other words, taxpayers will end up paying for all the decades-long malinvestment in US universities which has resulted in condo living for students and fat administration jobs for useless people and overpaid professors doing pointless research. But at least we can get Chinese student to pay full price. Maybe they like the fresh air?
You almost had it right. You need to discriminate between liberal arts/social science professors and STEM professors. STEM professors absolutley make their salery, which by the way isn't even close to 6 figures for an associate or assitant professor. Their research also brings a lot of private money to the school as well as royalties from patents.
The rest I agree with, especially overpaid admins. I knew an assistant who basically just shuffled papers around and sent e-mails all day making more than 100k. That was A LOT more than assistant or associate professors who were making ~70k.
Debt jubilees will happen for the criminals, not the goyim. Just like the bailouts went to criminals, not the goyim. But they will tell you it's going to save the world and be good for everybody, same as always.
Student loans that can no longer be discharged in bankruptcy, and are primarliy used by Goyim, are a perfect example. I don't know any Jews that have student debt.
bernanke's son
The student debt will be forgiven as the last executive order guaranteed. We will have the millenial idiots voting Demonrat for 200 years, not that there is any difference..
Something has to give. Young people are saddled with FICA. We have too many retirees for workers to support already. Young people with enough smarts to (not wisdom) are likely smart enough to realize they can't afford to have children. Idiocracy in action.
So forgive student debt and maybe some of the more useful animals in the herd will reproduce.
I thought the last act would include the Corzine pardon.
Charges would actually have to be brought for a pardon to be needed. Even that would be a step in the right direction
" I'll take a loan from you, and this son or daughter of mine is the collateral. default meant... slavery."
Actually, going back to biblical times, the jubilee included freeing all slaves and prisoners (as well as wiping out the debt).
"The origins of Debt Jubilee go back to (literally) Biblical times, as our societies have been bankrupting themselves, and then “resetting” for well over 2,000 years."
The Morality and Legality of Debt Jubilee, Part I"In the Holy Bible, Leviticus 25:8-13 states,[1]
Beautiful how you (as usual) accidentally overlook the most obvious reason for regular debt jubilees:
No perpetual debt rolling can occur.
In other words the lies cannot pile up higher and higher, but are reset to zero every 7 years.
how bout a jubilee from the USURY?
A particular fiat currency does not survive the destruction of the elitists who own it. Who said that?
The only question seems to be if the US Northeastern Establishment is finally removed from power.
Anyone want to bet we get back every point lost over last two trading days (200 dow points), by 2:00 pm central? These downside moves are nothing but psychological theatre...Adding drama to enhance a manufactured reality.
yes just a brake before Apples toys show March 9th
this is the last brick holding this comedy
noting left after that because the Greece repayment approaching fast
Another anti-Semite exposed.
The Israeli Government is the biggest bunch of anti-semites on the planet, due to their program of extermination for the Arabs of the region.
Of course, that's why there's no Arabs in the Middle East.
Idiot.
Exposed? To whom? What a pussy.
We should say you're another Jew exposed, it's not us goyim changing surnames or running around with dual citizenship trying to blend in with host nations.
anti-semitic or anti-parasitic ?
If you wrote this as a play a movie of the week script, no woud ever produce it, because they would say it was simply to contrived. I had to splash water in my face after watching this to make sure I was awake!
The Onion is also on TV now?!
LOL!
This is the kind of idiotic stuff you hear shortly before a market crash. Look out below.
Problem is we've been hearing this crazy stuff for at least a couple years now, and stawks just keep going.
Took about two after the advent of flipping programes for the market
to tumble.Patience.Not even the FedRes can stop a stampede.
Sure they can manipulate in these low volume markets, but if the herd turns......
NEVER.GO.FULL.RETARD
<--- Thirst Mutilator personal 'TROLL' instinct evidently overcame NEVER.GO.FULL.RETARD instinct ~ lol
Corporate owned media does this and will do it even more henceforth... lie, mislead and get the dumbest portion of society to "invest."
But it sounds so..so..progressive and forward thinking that Brock and Sarah Mcdouche will dive right in. After all, you get a twofer, newer his and her BMW's and moar stawks. It's like free cheese wiz and Boones Farm wine with the room and kids stay free.
This has GOT to be near the top now!
DavidC
For years I thought the same. I think they are targeting banks in a mattress. Can't be that much left as most people seem like life is good but it is that credit card keeping the illusion to their neighbor who is also doing the same thing
So true.Why give lenders and brokers only 60% of you life's earning when you could up it to 85%?
I was just thinking about taking out a 30 year home equity loan to buy facebook.
bump it with margin
I took out a 15 to buy silver.
They should have the shit smacked out of them for suggesting such a thing but I guess Yellen told them to do it and they must comply.
I can't believe she didn't laugh when she asked, "Is this a prudent thing to do"?
CNBC might as well be QVC II
Can't wait ti watch this blow up in everyone's faces.
Insanity. Desperation. We are approaching the end game.
Mortgage your ass and BTFD.
only if you take the money and buy stocks on margin. think of the leverage..
I don't know anyone who watches CNBC any longer. It's theater and nothing more.
Between CNBC and MSNBC there are a total of 20 viewers.
20 , you think that many ?
Yeah but I get my best laughs of the day from those knucklers, i get my second best trying to load a page on zero hedge.
Adblock is your friend.
what is "CNBC and MSNBC" ? can't for the life of me figure out that acronym-
I noticed the Challenger job cuts Y/Y ticked up 3%. Looks like we might have hit the bottom of the unemployment cycle.
I had $30k to buy a car with. I took a loan for the car, and used the cash and 20:1 leverage to buy $600k worth of stocks in web-based start-ups. I'm gunna be rich... RICH, I tells ya!!!
Step right up! Take a look at our all-new, 4,500-lb., all-wheel drive visa cards. But hurry! Like the winter - this sale won't last forever.
Ha they are comparing it to sitting in a savings account getting NIRP'd, or ZIRP'd.
How can these people sleep at night?
Oh ... I'm so glad I do not watch that t.v. channel anymore!!
Nice to see you comment again!
Sorry, you are wrong and there will be no crash. Instead, the "Seeds" HAVE BEEN SEWN FOR A "Debt Jubilee"-----the responsible will be continually screwed, rest assured. The responsible said that the markets were corrupt and too high---they became more corrupt and went higher. The responsible said save your money, not spend it----the rewards went to those who spent, not saved. The responsible said debt was unsustainable and planned according----the debt continued to rise.
In the end, the responsible citizens will continue to lose---REST ASSURED. Debt enslaves, and the oligarch’s want slaves, so they will continue to reward that behavior with printed out of thin air fiat that an ignorant, foolish population blindly trusts to buy their "Shit" on credit.
For the responsible, the game is played as "heads they win, tails you lose".
When the unsustainable is no longer sustainable, there will be debt forgiveness, more restructuring, or a jubilee---whatever it takes to keep the masses enslaved and dumbed down on their opiate of choice.
Yep, that's how I see it, too.
Well, ya, but a debt jubilee is actually a crash, but with a controlled reset.
Deflation is an inevitable result of inflation. It can take many forms, starting with personal bankrupcy, but this bubble will pop.
Keep charging then. Why bother working? LOL
banksters are clearly losing...
Big banks haven't made auto loans available for affordable used cars in many years. Consumers don't have $5000 but they will have $500 next month. And, not that I don't enjoy paying taxes, I may write a letter to my congressman about that fact that used car sales are taxed--every time it is sold.
NO. They're WINNING!
And here we have a blatant example of malinvestment incentivized by ZIRP. Thanks alot you cocksuckers. You all will meet the end of a rope someday.
That right There is insane logic !!!
Insanity.
The Onion would have rejected this bit as just too over the top.
OK is this the signal to buy SPY puts?
If you're prepared to fight the Fed.
I could see me taking out such a loan to buy PMs.
I may even bet that those banks won't exist by the time the loan is done.
1) Get a negative rate 1.000.000 $ loan let's say -3 % for one year.
2) So you will reimburse only 970.000...
3) Now buy a oil contract at 50 $ then take delivery.
4) Now store it for one year while selling it back at 60 $ on the 2016 contract.
5) Profit from you contango:
20 % from the contango so 200.000 $ + the 30.000 that you don't need to reimburse since it's a negative rate.
Cash out 230.000 $ risk free.
------------------------------
Better:
1) Take loan at -3 %.
2) Take delivery in cash on the USD future contract.
3) Stack it preciously in a safe.
4) Sell it back on a 2016 contract you may even win a small profit here with contango.
5) Reimburse keep 30.000 $
6) Take a fast girl and pay her in Bitcoin for the lulz.
Bullish for GDP, can't wait for my -3 % loans bitchez.
i've got oil to sell at $50/bbl anytime you want if you can come and pick it up.
Seriously ? Unfortunately I live in France... Maybe I should postulate on Goldman Sachs commodity trading division lulz or create my own hedge fund...
I'm pretty sure that some guys in USA who read ZH will do what I said above.
yeah, lulz, transporting it from the us midwest to france would cut into your profit margin a bit. too bad because oil isn't like gold where they pay producers the spot price.
let's see. i can buy the 10y ust that currently yields 2.12% or i can buy subprime auto-backed btfath securities that yield 0.5%. what to do, what to do?
I know a guy who got 300k mortgage loan with 50k extra and he put all solar on his home and bought electric car. So now he pays ZERO for transportation costs . and ZERO to the electric company.
Pretty good investment.
I hope he has 70 more years of life left in him so he can breakeven on his "investment". He sounds like a debt slave with a McMansion. Have you looked on auto trader or cars.com for used Volts/Leafs/Focus Electric/etc? Awful depreciation rates.
You guys will never get it. I spent 400 euros 3 years ago doing my whole home in LED lighting. My electric bills went down a third.
I never think the way you do. I am also DEBT FREE. and I always buy quality stuff even if it costs more. and I pay CASH.
there's absolutely nothing wrong with buying something that works for you at a profit... if LED lighting replacements don't fit the definition then nothing does, I had the same experience... between that and HVAC upgrades my electric bill was cut in half...
spend the money if you know it's going to pay for itself and then some, isn't that supposed to be the whole idea?
Yes that is the whole idea. I am simply not convinced that buying an hybrid or an electric car is worth it right now.
people treat car loans just like mortgages and property taxes, they will always have to pay them monthly till they drop. this is what creative financing and i must have the latest thingy culture driven into mainstream america's head has wrought. companies are doing this with smart phones and some have tried with appliances. it will continue to be tried and somewhat successful since most Americans don't have the cash upfront to purchase anything outright so they just spread it out even though it will cost them 2x if they didn't.
Kind of like rent to own furniture and payday loans.
Both are ILLEGAL in this country.
Sorry to hear you live in a place where it's illegal to rent furniture. You are right to be upset about it.
I know a guy who got 300k mortgage loan with 50k extra and he put all solar on his home and bought electric car. So now he pays ZERO for transportation costs . and ZERO to the electric company.
Pretty good investment.