Another Bubble Bursts
Remember in December when we were told incessantly that "meh, it's just 25bps!"
It appears that 'liftoff' in rates is having a real impact on a particular sector as the potential for tightening credit conditions (and higher costs of funding) have crashed the stocks of peer-to-peer/direct lenders like Lending Tree, OnDeck, and Lending Club.
Another bubble bursts! And the companies are shocked!
- *LENDING TREE NOT AWARE OF ANY REASON TO JUSTIFY SHR DECLINE
It seems someone is...
Dear Janet, it appears the US consumer (or small business) is nothing like as strong as you "believed."
(9 votes)
»
- Login or register to post comments
- Printer-friendly version
- Send to friend
- advertisements -
Janet Yellen, P(izza) h(ut) D(river).
She still "believes" it. More rate hikes to come.
haha...no wonder Larry Summers came out bitching today about the 4 rate hikes .... he's on the board of Lending Club
http://www.bloomberg.com/news/articles/2016-01-13/summers-says-global-economy-can-t-withstand-four-2016-fed-hikes-ijd1kz2x
"You see what happens Larry when you don't print enough magical fantasy unicorn money?"
https://www.youtube.com/watch?v=qGYiL-pgkOs
The funny thing is that those rate hikes will have to happen before Labour Day. After that everyone goes into "quiet" mode due to the elections.
Wasn't it him, along with Rubin and Greedspank on the cover of TIME a decade or 2 back - 'The Committee to save the world' or something like that...?
Ah Summers, one of the architects of the current derivatives market / bubble... A pox on this assclown and his zionist buddies...
It only matters what the Fed believes. "give me control of a nations money supply......."
That is until the villagers show up with pickforks, tar and feathers...
https://www.youtube.com/watch?v=ivzVgsR2yEc
post hole digger
piled high and deep
soon lending tree will be growing legalis pot and really lending the trees! Janet will get the first dime bag harvested!
Have no fear. 3:30 approacheth...
not today
Ain't happening.
It will probably with just a small bump up.
lets see if they go 3 for three. Got whipsawed today on my shorts...... stopped out on both of them. My bet is they get the Daq back to less than 1% down....
Yes, 3:29 too ... what do you mean?
Somewhere out there are 1.2 quadrillion in derivatives just waiting to blow up. Looks like old Yeller lit the 25bp fuse.
Deutsche Bomb is on the end of it.
The short of a lifetime.Shame the counterparties will blow with it.
I want Uncle Warren and Soros to get caught doing something nasty together.
beLIEved
the only lenders she cares about are tbtf
The Kaiser will be sharpening his pencil and lockin' caps.
Max ????
Can't you just see Janet at home with the turban, frantically waving her hands over a crystal ball..
No.
Actually, I can't see her at home, unless said home is a cave. There's quite a bit of troglodyte in her. Or, more properly, troglodyke.
From Bloomberg (MBA Mortgage Applications) http://www.bloomberg.com/markets/economic-calendar/
The new year is seeing a surge in mortgage activity reflecting a strong jobs market and low rates, according to the Mortgage Bankers Association's weekly report. Purchase applications surged 18 percent in the January 8 week with refinancing applications up 24 percent. These gains, however, also reflect volatility in weekly measures and largely reverse giant swings in the prior week's data. The average rate for conforming loans ($417,000 or less) fell 8 basis points in the week to 4.12 percent.
US Consumer/US military....same illusion
ZH jokers using the wrong models. You need to use the model of the Venus Space Probe from the Six Million Dollar Man Season 4 Episode 13 & 14.
http://img1.seite3.ch/news/309/270674-deathprobe.jpg
if they die on a 25 bp rate hike, they deserved to die anyway. market clearing event. a big one preferably.
of course, the powers that be will save them for longer. who knows how long it can last.
People wonder why RUT and small caps are getting hammered, and run to excuses like currency appreciation, and geo macro politics.
The real reasons why small caps are suffering, is because of hidden costs and inflation for U.S. consumers and producers. Over extended consumer credit, real estate bubble, student loans, subprime auto loans, zero wage growth, healthcare costs, regulation & taxation, ect...
It's an sad state of affairs that politicians and the investment banking community are aware of the situation, and chose to nothing about it.
True, It will slowly move up the equities food chain.
"It's an sad state of affairs that politicians and the investment banking community are aware of the situation, and chose to nothing about it."
There's not a fucking thing that they can do about it. That is, other than hasten the biggest collapse in human history.
The entire game has been reliant upon growth. Growth is no longer possible. I was bringing this up YEARS ago and people thumbed their noses at such a thought. N ow all growth indicators are flashing red and people are starting to mention "growth" more and more: such as you note- "zero wage growth," which, BTW, requires growth in production to occur.
The exponential function was always going to put a halt to our idiotic premise of perpetual growth.
I figured there would be an argument for planned destruction... I've read your comments over the years, and mostly agree with them.
Obama: Anyone claiming America's economy is in decline is peddling fiction
Nuff said.
Remember the open letter to the banks this week by some goldbug claiming P2P would finally rid the world of banks?
Never mind that banks had hundreds of years experience ridding the world of their competition AND access to a printing press making it impossible for lenders to compete if they could only rely on funding by people putting their own hard-earned savings at risk?
Looks like P2P is their latest victim. Expect Lending Tree to be bought up at a heavy discount once Janet turns the QE tap back on, along with distressed Alberta oilpatch property.