Wolf Richter with Jim Goddard on This Week in Money: A wide-ranging interview on the auto industry, plus how mortgage rates impact housing markets in the US and Canada, and how the brick-and-mortar meltdown is hitting the mall segment of commercial …
By Rodney Johnson General Motors (NYSE: GM) has a plan, and it doesn’t involve electric vehicles. Sure, the green-mobiles get all the headlines, but they don’t produce a lot of dough. For that, you need to sell a bunch …
Subprime goes to the Toronto condo market. By Stephen Punwasi, Better Dwelling: A few weeks ago, a real estate agent told me about his client. Relatively wealthy older dude, closed on not one but two townhouses he plans on flipping. After …
via ifre: Car finance companies have pushed into fresh territory this year by selling Single B rated debt backed by loans made to sub-prime borrowers. Selling Double B bonds was a bold trade not so long ago but as demand has …
Wolf Richter wolfstreet.com, www.amazon.com/author/wolfrichter Wolf Richter with Jim Goddard on This Week in Money: A wide ranging interview on the auto industry.
by John Rubino The longer an expansion lasts, the crappier its paper becomes. That may seem like a baseless assertion, but it’s actually just simple math. Early in recoveries, borrowers and lenders are both shell-shocked by the just-ended recession, so …
via Business Insider: The Everything Bubble has made the inflation of the second housing bubble, now well further into its mania stage than the subprime bubble got, go largely unnoticed. As ZIRP, QE, and the resultant wild risk-asset inflation has …
by Dave Kranzler of Investment Research Dynamics A branch manager gets home loans for borrowers with weak credit or low incomes—and taxpayers back him up. – Bloomberg.com Bloomberg News featured a story today that I find to be an outrage. It seems that some punk kid in …
Authored by Adem Tumerkan via Palisade Research, Last week, used car prices had their biggest drop since 2009 – directly after the financial market meltdown of 2008. And right now, the auto market is showing signs of incredible worry. Delinquent subprime auto-loans are higher …
by Dave Kranzler of Investment Research Dynamics Other people’s money is always more fun to play with recklessly than your own. As such there’s been a quiet escalation in number of private capital pools offering mortgage (and auto) financing to subprime quality borrowers. …
Wolf Richter with Jim Goddard on This Week in Money: We also discuss what’s still holding back EVs, the iffy future of Tesla, and how a trade war might disrupt the global supply chains of the auto industry. And here’s the …
From CNN Money: General Electric is still haunted by its disastrous adventure in subprime mortgage lending more than a decade ago. GE shut down WMC, its mortgage business, in 2007 after the market for lending to risky borrowers collapsed. But the …
This is another SUBPRIME CRISIS. Whether or not this will be anything close to the housing crisis from 2007, doesn’t matter. There will be a TRIGGER EVENT that takes place and it will have a domino effect around the world. …
This model has been getting kicked around for the past year or so, but in various forms. About 6 months ago, the Congress was looking to allow pay day lenders the ability to skirt customer protection laws in states by …
By Dave Kranzler of Investment Research Dynamics …Only this time around they are sponsored by the U.S. Government and guaranteed explicitly by the Taxpayers. I say “explicitly” because Government agency-issued mortgages are directly guaranteed. In 2008, the Government bailed out the banks who …
by John Rubino Record student loan balances? Check. Trillion dollar credit card debt? Check. Six tech stocks dominating the Nasdaq? Check. Subprime auto loans at record levels? Check. All that’s missing is subprime mortgages and we’d have every bubble base …
What if, back in 2008, when Lehman Brothers, Bear Stearns, Merrill Lynch and many others were toppling like dominoes, someone said to you: “If you think this is bad, wait another decade, an even bigger financial crisis will loom.” It …
The subprime mortgage industry vanished after the Great Recession but is now being reinvented as the nonprime market. Carrington Mortgage is now offering mortgages to borrowers with “less-than-perfect credit.” Demand from both borrowers and investors is exceeding expectations. Subprime …
Wolf Richter wolfstreet.com, www.amazon.com/author/wolfrichter Wells Fargo has $81 billion in exposure to loans that, on paper, it isn’t exposed to. A couple of days ago, when I wrote about the soaring delinquency rates in subprime auto loans – the worst …
Real estate isn’t supposed to be a speculative asset. Yet we have learned over the years that it absolutely is. People have taken every dollar the banks and lending institutions will give them and bought the maximum they could get. …
Do subprime loans continuously increasing give you cause for concern? Or is this time different? Watch out for the subprime disaster waiting to happen. You would think that banks learned their lesson last time around. Of course not! They have …
by Simon Black They say that goldfish have the shortest memory in the Animal Kingdom… something like 3-seconds. But it turns out this isn’t actually true. Researchers at the Israeli Technion Institute of Technology conducted an experiment in 2009 proving that …
Wolf Richter wolfstreet.com, www.amazon.com/author/wolfrichter Credit problems always appear first at the margins. The new Fed remains a somewhat unknown quantity: There are still four vacancies on the Fed’s seven-member Board of Governors that forms the core of the policy-making FOMC. The new …
https://twitter.com/NorthmanTrader/status/968512393046364160 "Don't see build up of leverage among households." – Fed's Powell https://t.co/FFvV1qUc34 — Pedro da Costa (@pdacosta) February 27, 2018 “Don’t see build up of leverage among households.” – Fed’s Powell Oh-kay. Investors’ Zeal to Buy Stocks With Debt …
by Dave Kranzler of Investment Research Dynamics I experienced a real eye-opener this past week. The lease on my fiance’s Audi A3 terminates soon. I was scanning the “pre-owned” inventory at the two largest Audi dealers in Denver expecting to see some good …
Credit-Card Payments SURGE Americans increasingly relied on credit cards to make payments in 2016, and made more of those payments remotely, according to new data the Federal Reserve released Thursday. The number of credit-card payments grew 10.2% last year, to …
Wolf Richter wolfstreet.com, www.amazon.com/author/wolfrichter But there is no Financial Crisis. These are the boom times. Given Americans’ ceaseless urge to borrow and spend, household debt in the third quarter surged by $610 billion, or 5%, from the third quarter last …
Subprime car loans have been around for ages, and no one is suggesting they’ll unleash the next crisis. But since the Great Recession, business has exploded. In 2009, $2.5 billion of new subprime auto bonds were sold. In 2016, $26 …
by John Rubino This cycle’s main bubble is in government bonds and fiat currencies, with a dash of large-cap tech thrown in for variety. But like a hurricane spawning tornadoes at its periphery, this Money Bubble is creating secondary …
by Robert Carbery Due to the federal government’s own reckless housing policies in the run-up to the financial breakdown in 2008, the world economy came crashing down. The seeds of the crisis were planted during Bill Clinton’s administration when …