With the usual two year delay, others such as Reuters, are starting to notice that under the Tesla hood there are nothing but cockroaches. And now that the growth "story" has taken a back seat following the latest guidance cut in deliveries, fears that the company will have to dilute shareholders to keep the "story" afloat, are rapidly emerging. Case in point, Reuters calculation of a fact that was known to most observers but certainly not to retail enthusiasts who "bought the stock just because others bought the stock", i.e., that Tesla loses about $4000 on ever car it makes.
From our perspective, the fundamental reason for economic stagnation and growing income disparity is straightforward: Our current set of economic policies supports and encourages a low level equilibrium by encouraging debt-financed consumption and discouraging saving and productive investment. We permit an insular group of professors and bankers to fling trillions of dollars about like Frisbees in the simplistic, misguided, and repeatedly destructive attempt to buy prosperity by maximally distorting the financial markets.
"The costs of executing the collateral are very high unless creditors send pirates from Algeria to go and get the vessel."
- Fed Officials May Offer More Clarity on Rates (WSJ)
- Stocks rebound, shrugging off volatile and weak China (Reuters)
- Three-Day Selloff Knocks 11% From China Shares (WSJ)
- China shares fall again as Beijing scrambles to calm markets (Reuters)
- VAT hikes to make Greek destination less popular (Kathimerini)
- Varoufakis - Something is rotten with the eurozone’s hideous restrictions on sovereignty (FT)
- EU denies Varoufakis 'tax control' claims (FT)
"Rammed" - Fiat Chrysler Forced To Buy Back 500,000 Pickup Trucks From Customers In Historic SettlementSubmitted by Tyler Durden on 07/27/2015 13:29 -0400
In a stunning ruling, US safety regulators have mandated that Fiat Chrysler must offer to buy back from customers more than 500,000 Ram pickup trucks and other vehicles as part of a costly deal with safety regulators to settle legal problems in about two dozen recalls. As WTOP reports, this is the biggest such action in US history, and is in addition to a $105 million civil fine and owners of more than a million older Jeeps with vulnerable rear-mounted gas tanks will be able to trade them in or be paid by Chrysler to have the vehicles repaired. Think the punishment is harsh, consider that at least 75 people have died in crash-related fires, although Fiat Chrysler maintains they are as safe as comparable vehicles from the same era.
- Chinese shares tumble 8.5 percent in biggest one-day drop since 2007 (Reuters)
- Japan’s Economy Shrank Last Quarter, Top Forecaster Says (BBG)
- Creditor teams in Athens to work on third bailout (AFP)
- Tsipras’s Paradox Is Six Months of Pain and Enduring Popularity (BBG)
- Goldman-Backed Instant Messaging Company Seeks New Investment (WSJ)
- Best Buy will sell the Apple Watch on August 7th (Engadget) - when is it coming to Dollar General?
- Senate votes to revive Ex-Im (Hill)
- U.S.-Turkey Deal Paves Way to Set Up Buffer Zone in Northern Syria (WSJ)
- Gunman kills two, wounds seven in Louisiana theater before killing himself (Reuters)
- Health insurer Anthem to buy Cigna in $54.2 billion deal (Reuters)
- Murder, Poisoning, Raids: It’s Election Season in Russia (BBG)
- Lagarde Push for Greece Debt Relief Challenges Merkel (Bloomberg)
- Fund Boss’s Gamble on Health Law Pays Off Big (WSJ)
- Wall Street Cranks Up Its Outlook for Amazon After It Delivers Monster Earnings Report (BBG)
- China's Richest Man Marks Push Into Hollywood With Jake Gyllenhaal Movie (BBG)
- West Africa's alarming growth industry - meth (Reuters)
470,000 Vehicles At Risk After Hackers "Take Control & Crash" Jeep Cherokee From A Sofa 10 Miles AwaySubmitted by Tyler Durden on 07/21/2015 19:30 -0400
In what is being called "the first of its kind," Wired.com reports that hackers, using just a laptop and mobile phone, accessed a Jeep Cherokee's on-board systems (via its wireless internet connection), took control and crashed the car into a ditch from 10 miles away sitting on their sofa. As The Telegraph details, the breach was revealed by security researchers Charlie Miller, a former staffer at the NSA, and Chris Valasek, who warned that more than 470,000 cars made by Fiat Chrysler could be at risk of being attacked by similar means. Coming just weeks after the FBI claimed a US hacker took control of a passenger jet he was on in the first known such incident of its kind, the incident shows just how vulnerable we are to modern technology.
When oil priced tumbled last year it was supposed to be a major boon for car sales and, indeed, courtesy of car loans whose rejections rates have never been lower and with LTVs for loans on used cars sold to subprime borrowers now a record high 150%, some such as government-favorite GM benefited greatly, with sales of Chevy Silverado jumping a solid 18.4% June. Others, however, have been struggling: sales of Ford's top-selling and most profitable line, the aluminum-bodied F-150, were down 8.9% last month as Ford's market share of big-pickup trucks dropped to 28% from 33% one year ago. Ford's response: a huge push to incentivize buyers, in the form of discounts that can exceed $10,000!
- Tsipras Braves Parliament on Aid as Greek Outlook Worsens (BBG)
- European markets rise before Yellen speech, Greek vote (Reuters)
- China’s Growth Beats Economists’ Forecast as Stimulus Kicks In (BBG)
- China stocks drop again, positive data shrugged off (Reuters)
- Yellen intensifies Republican outreach amid Fed probe, Senate bill (Reuters)
- Iran deal holds both promise and peril for Hillary Clinton (Reuters)
- Iranians Party Into the Night as Khamenei Backs Accord (BBG)
The rescue of AIG should not serve as a source of comfort to investors.
- Greece faces last chance to stay in euro as cash runs out (Reuters)
- Tsipras Begins Brussels Campaign to Keep Greece Inside the Euro (BBG)
- Greek Crisis Shows How Germany’s Power Polarizes Europe (WSJ)
- Eurogroup Head Dijsselbloem Calls for ‘Credible’ Greece Package (BBG)
- Europe Not Playing ‘Domino Theory’ Leaves Markets Calm on Greece (BBG)
- China stocks fall again despite support measures (Reuters)
- Chinese Trading Suspensions Freeze $1.4 Trillion of Shares Amid Rout (BBG)
- Crude Creeps Higher After Downturn (WSJ)
- China’s Stocks Enter Bear Market as Rate Cut Fails to Stop Rout (BBG)
- Stocks Tumble Around the World on Greek Crisis (WSJ)
- Some say back to the drachma for a Greek reboot (Reuters)
- Greece Imposes Capital Controls as Fears of Grexit Grow (BBG)
- Panic Sets in Among Hardy Hedge Fund Investors Remaining in Greece (NYT)
- Euro off Greece-driven lows after SNB intervenes (Reuters)
- Western Union to close in Greece for rest of week (Reuters)
- European banks, bonds shaken by Greek turmoil (Reuters)
From Greek lobbyists to Silicon Valley VCs and from Goldman BSDs to FT reporters, The Bilderberg Group will meet later this week in Tirol to discuss what happens next to the rest of the world... here are the participants...
- Greece Said to Submit Revised Budget Plan in Bid for Funding (BBG)
- Protesters seek firing of Texas officer who threw girl to ground (Reuters)
- HSBC to cut 50,000 jobs in quest for higher dividends (Reuters)
- U.S. base shipped live anthrax to 19 states plus D.C.: Pentagon (Reuters)
- Obama Administration Opens Door for More Student-Debt Forgiveness (WSJ)
- China Said to Weigh Margin Finance Rule Change Amid Stock Boom (BBG)
- Doctor who trained U.S. troops suspended for macabre techniques (Reuters)
- Exxon to Face Regulators’ Questions Over Quakes (WSJ)