Posted tagged ‘Sub-Prime Auto Loans’

Must Reads For The Week 5/20/17

May 20, 2017

How The Obama Precedent Empowered Trump, by Victor Davis Hanson, at victorhanson.com. Excerpt from the article: “A supposedly disinterested media’s ecstasy over Obama’s election ensured that its subsequent revulsion at Trump could be taken no more seriously. Once a journalist declares a president a god or capable of sending shocks down one’s leg, then he would be no more credible if he were to pronounce another president the anti-Christ or capable of causing boils on one’s appendages…….A critical media is not a mere reset button that one turns on and off at one’s convenience. Instead, once it was short-circuited after 2008, its burned-out switch cannot be flipped back on in 2007. In sum, there is no longer a believable media that can offer credible critiques of the Trump presidency.”

Sock Puppets Taken To An Entirely New Level: ‘Click’ Farms Of 10,000 Phones That Give FAKE Likes, by John Lott, at johnrlott.blogspot.com. Fake likes produce fake stats about which stories are trending on social media. You now have the ability to manufacture fake outrage. Related article – Up To 15% Of Twitter Accounts Are Fake, Study Finds, at zerohedge.com.

Donald Trump’s Big Problem, He Doesn’t Understand Power, at targetliberty.com. Trump is an outsider who doesn’t understand the game played by the insiders.

Dismantle The FBI, And Give Its Money Back To The States, by Ryan McMaken, at mises.org. The FBI has turned into a big bloated money-grubbing political bureaucracy. Its goal is to make sure the FBI is declared the winner in every situation. It’s job of law enforcement can be done better and cheaper if it was decentralized. The leadership of the FBI, (not the rank and file agents), aren’t the guys wearing the white hats like they have been portrayed.

Public-Sector Unions Keep The Gravy Train Flowing To Fire Departments, by Ryan McMaken, at mises.org. Another example of “public servants” feeding at the public trough. From 1980 to 2013 fire runs have declined from 3Million to 1.24 million. In a free market, as demand for a service decreases the supply of that service shrinks also. In the public sector the opposite seems to happen. Government public servants want to protect or increase their skimming operation at the taxpayers expense. Excerpt from the article: “Don’t let these facts get in the way of the romantic view of firefighting perpetuated by popular culture. No organization loves the fantasy version of firefighting better than the public unions that lobby constantly for more lucrative salaries and benefits for firefighters.”

Wind Turbines Are Neither Clean Nor Green And They Provide Zero Global Energy, by Matt Ridley, at spectator.co.uk. Can the taxpayer subsidized experiment of green energy finally be coming to an end? All the money, resources, time, labor and capital that has been wasted on green energy, could have been used for more productive activities. Government “investment” is an oxymoron, because ‘bureaucrats’ aren’t “investing” their own money.  Wasted resources are kept to a minimum in the private sector because businesses suffer losses. But in the public sector waste continues for longer periods of time because of the seeming unlimited supply of taxpayer money.

The reality about green energy is only optional for a little while. Read these articles. Wind Power: Michigan Voters In Three Counties Reject or Restrict It, at nationalreview.com. Oklahoma Ends Wind Tax Subsidy, at instituteforenergyresearch.org. Europe Has Little Output To Show For Its Wind And Solar Investments, at instituteforenergyresearch.org.

More Solar Jobs Is A Curse, Not A Blessing, at cfact.org. More workers employed in an industry that produces higher cost energy is a bad thing. It has taken longer for economic principles to correct for these non productive uses of resources, time, labor and capital. The tax payer money that government has invested in these non productive activities has distorted the market. The inevitable correction is happening. Fortunately economic laws always win.

The Other Shoe Drops: Prime Auto Loan Losses Surge As Recoveries Tumble, at zerohedge.com. Instead of decreasing supply to match decreasing demand, the auto industry brought future demand into the present by pushing subprime loans and low payment leases. We are going to see an over-supply of used cars because the  leases have ended and also because of subprime loan defaults. There is no present demand to support the over production because demand was borrowed from the future to keep the car manufacturing plants operating in the present.

CARTOONS

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Must Reads For The Week 1/23/16

January 23, 2016

ECONOMIC FORCES EVENTUALLY WIN

China Promises To Keep Intervening To “Look After” Stock Market “Investors”, Hurt “Speculators“, at zerohedge.com. So the cure for the Chinese stock market bust is Government intervention? Didn’t Government intervention cause the boom in the first place?  Government planners can’t stop reality. Economic forces are always in the process of correcting Government interventions.

The Rest Belt Goes Red – Glory Days Of China’s Steel Boom Leave Behind Abandoned Mills And Broken Lives, at davidstockmanscontracorner.com. Another example of a Government created bubble ending in a bust. Government centrally planning an economy doesn’t work. Ask the former Soviet Union.

The Three Musketeers Of Global Deflation – China, Russia, and Saudi Arabia, at davidstockmanscontracorner.com. We know about China’s problems, but over 65% of Russia’s and 45% of Saudi Arabia’s GDP comes from oil. Oil below $30 a barrel hurts these two countries. Economic forces can’t be stopped by Government central planners.

The Fragile Forty & How The Word Lost $17 Trillion In 6 Months, at zerohedge.com. Forty global stock indices are in bear markets, as over $17 trillion of equity has evaporated in the last six months. Central banks think the wealth effect created by their money printing will reignite the global economic engine. It hasn’t worked because economic forces eventually prevail.

This Is What The Death Of A Nation Looks Like; Venezuela Prepares for 720% Hyperinflation, at zerohedge.com. Bernie Sanders take note. This is what a socialist utopia looks like. Excerpt from the article: “..in reality the Venezuela economy no longer exists, with all transactions now taking place in grey or black markets, and the government apparatus effectively operating in a vacuum.” Economic forces creating a black markets was inevitable.

Schlumberger Fires 10,000 As It Announces $10 Billion Stock Buy Back, at zerohedge.com. To keep your slumping stock price up, all you have to do is buy back your stock. Simple supply and demand. How do you finance this buyback. Either borrow low interest printed money like many companies have and are doing, or get rid of your biggest expense, your workers. Economic reality forces businesses to make decisions.

A Post Boom World, Auto Prices Will Fall,, by Patrick Barron, at mises.org. Easy credit and sup-prime loans for cars will eventually end in a bust, like the housing bubble. Economic forces of supply and demand will bring the car market back in line.

And You Thought QE Was Over: The Fed Will Monetize Half Of This Years U.S. Treasury Issuance, at zerohedge.com. Over the next four years, the Federal Reserve is going to have to repurchase, with printed money, $1.1 trillion in maturing Government debt that it owns. The Federal Government can only grow to it’s present size if it is financed by it’s central bank, the Federal Reserve.

A RECESSION IS THE CORRECTION

Why We Need A Recession, by Ronald-Peter Stoferle, at mises.org. A recession is nothing more than economic forces correcting the misallocation of resources, labor, land and capital that was brought about by previous central bank money creation and easy credit.

As Ludwig von Mises said: “The return to monetary stability does not generate a crisis. It only brings to light the malinvestments and other mistakes that were made under the hallucination of the illusory prosperity created by the easy money.

And as F. A. Hayek said: “To combat a depression by a forced credit expansion, is akin to the attempt to fight an evil by its own causes; because we suffer from a misdirection of production, we want even more misdirection – an approach that necessarily leads to an even more serious crisis once the credit expansion comes to an end.

GOVERNMENT KNOWS BEST

How Government Poisoned The People Of Flint, by John Counts, at mlive.com. Government doesn’t know what’s best.

Texas Adopts New York Values On Fantasy Football, Tho Bishop, at mises.org. Government wants to protect you from illegal gambling. It’s better for you to buy legal state lottery tickets.