This NEXT Bubble Is Going To Hurt!

[Toddsterpatriot]

Holy crap...you are REALLY ignorant about the economy.

You dumb shit...if the banks planned it all and got out when things were good...why did the Fed have to bail them out to the tune of $1.6 TRILLION DOLLARS directly and LOADS more indirectly?
And why did Bear Stearns go under?

'Over the next six months, TARP was dwarfed by other guarantees and lending limits; analysis by Bloomberg found the Federal Reservehad, by March 2009, committed $7.77 trillion to rescuing the financial system, more than half the value of everything produced in the U.S. that year'

Emergency Economic Stabilization Act of 2008 - Wikipedia

The banks got killed by the boom/bust...they just had the Fed to bail them out.

Uneducated hick...stick to what you know (being xenophobic, misogynistic, racist and masturbating to pictures of Trump) and leave macroeconomics to those of us with IQ's over 90.

We are done here as I won't waste a second reading your undoubtedly moronic reply.


Have a nice day.

Todd and I work in the financial markets.

I’ve been in the investment business for 20 years, and I don’t work for a bank.

I also don’t believe that the CRA nor the GSEs were the reasons for the Financial Crisis.

The banks WERE stupid, but they didn’t plan the Crisis. Such conspiracy theories put you way out there on the crazy plane.

Bank CEOs at Bear got fired and Lehman brothers and several other less famous places did get fired.

And none got prosecuted....

Making stupid investment choices usually isn't a crime.

Selling fraudulent products is.

Who did that?

 

[Manonthestreet]

Banks did.....it's called mortgage backed securities.....bundling shit together and selling it as grade A

 

[Manonthestreet]

How soon people forget. When multiple Banks show up at multiple foreclosures claiming they own the house and the true owner can't be identified you might be in a shitshow of fraud.

 

[Toddsterpatriot]

Banks did.....it's called mortgage backed securities.....bundling shit together and selling it as grade A

MBS aren't fraudulent products.

 

[Manonthestreet]

Banks did.....it's called mortgage backed securities.....bundling shit together and selling it as grade A

MBS aren't fraudulent products.

When they are misslabled risk wise they are

 

[Natural Citizen]

Todd and I work in the financial markets.

Which precisely explains why neither one of you know what you're talking about when it comes to economic theory and monetary policy.

 

[Toddsterpatriot]

Banks did.....it's called mortgage backed securities.....bundling shit together and selling it as grade A

MBS aren't fraudulent products.

When they are misslabled risk wise they are

The rating agencies fucked up.

 

[Indeependent]

Dale Smith Global control is not coming via war, global control is going to happen via the markets. That IS what these bubbles are, the silent coup. Shit Stain did not save GM, he merely picked the winner. It was fixed.
You can buy the ORIGINAL GM shares on the net for about a dollar. When the ORIGINAL share is barely worth toilet paper what was SAVED? Nothing and it was NEVER intended to save anything!

That makes the "bubbles" the lynch pin of the coup NOT the result OF. EVERY bubble re-centers the market and the "sides" are getting smaller and smaller.

The banking oligarchs create the bubble and pull out when the profit to be made is highest and then they implode it...watch the carnage and then jump back in and buy up shares for pennies on the dollar and the cycle starts all over. The poor get screwed and the Illuminati bankers and their thirteen bloodline families suck more wealth out of their "energy sources" which is us.

It's not a pretty picture but it's a fucking fact.

The banking oligarchs create the bubble and pull out when the profit to be made is highest and then they implode it

Exactly!!

That's why no bank CEO lost his job after the crisis and every bank made money during the crisis.

Wait, what?

But what about the 4 million people who lost their homes?
I guess they all should have become bank CEOs?

 

[Toddsterpatriot]

Dale Smith Global control is not coming via war, global control is going to happen via the markets. That IS what these bubbles are, the silent coup. Shit Stain did not save GM, he merely picked the winner. It was fixed.
You can buy the ORIGINAL GM shares on the net for about a dollar. When the ORIGINAL share is barely worth toilet paper what was SAVED? Nothing and it was NEVER intended to save anything!

That makes the "bubbles" the lynch pin of the coup NOT the result OF. EVERY bubble re-centers the market and the "sides" are getting smaller and smaller.

The banking oligarchs create the bubble and pull out when the profit to be made is highest and then they implode it...watch the carnage and then jump back in and buy up shares for pennies on the dollar and the cycle starts all over. The poor get screwed and the Illuminati bankers and their thirteen bloodline families suck more wealth out of their "energy sources" which is us.

It's not a pretty picture but it's a fucking fact.

The banking oligarchs create the bubble and pull out when the profit to be made is highest and then they implode it

Exactly!!

That's why no bank CEO lost his job after the crisis and every bank made money during the crisis.

Wait, what?

But what about the 4 million people who lost their homes?
I guess they all should have become bank CEOs?

But what about the 4 million people who lost their homes?

What about them?

 

[Indeependent]

Dale Smith Global control is not coming via war, global control is going to happen via the markets. That IS what these bubbles are, the silent coup. Shit Stain did not save GM, he merely picked the winner. It was fixed.
You can buy the ORIGINAL GM shares on the net for about a dollar. When the ORIGINAL share is barely worth toilet paper what was SAVED? Nothing and it was NEVER intended to save anything!

That makes the "bubbles" the lynch pin of the coup NOT the result OF. EVERY bubble re-centers the market and the "sides" are getting smaller and smaller.

The banking oligarchs create the bubble and pull out when the profit to be made is highest and then they implode it...watch the carnage and then jump back in and buy up shares for pennies on the dollar and the cycle starts all over. The poor get screwed and the Illuminati bankers and their thirteen bloodline families suck more wealth out of their "energy sources" which is us.

It's not a pretty picture but it's a fucking fact.

The banking oligarchs create the bubble and pull out when the profit to be made is highest and then they implode it

Exactly!!

That's why no bank CEO lost his job after the crisis and every bank made money during the crisis.

Wait, what?

Holy crap...you are REALLY ignorant about the economy.

You dumb shit...if the banks planned it all and got out when things were good...why did the Fed have to bail them out to the tune of $1.6 TRILLION DOLLARS directly and LOADS more indirectly?
And why did Bear Stearns go under?

'Over the next six months, TARP was dwarfed by other guarantees and lending limits; analysis by Bloomberg found the Federal Reservehad, by March 2009, committed $7.77 trillion to rescuing the financial system, more than half the value of everything produced in the U.S. that year'

Emergency Economic Stabilization Act of 2008 - Wikipedia

The banks got killed by the boom/bust...they just had the Fed to bail them out.

Uneducated hick...stick to what you know (being xenophobic, misogynistic, racist and masturbating to pictures of Trump) and leave macroeconomics to those of us with IQ's over 90.

We are done here as I won't waste a second reading your undoubtedly moronic reply.


Have a nice day.

Todd and I work in the financial markets.

I’ve been in the investment business for 20 years, and I don’t work for a bank.

I also don’t believe that the CRA nor the GSEs were the reasons for the Financial Crisis.

The banks WERE stupid, but they didn’t plan the Crisis. Such conspiracy theories by the likes of Crazy Dale put one way out there on the crazy plane.

I worked for Chase Manhattan and Banker's Trust.
The mentality was that some other sucker would deal with the problem down the road.

 

[Indeependent]

Dale Smith Global control is not coming via war, global control is going to happen via the markets. That IS what these bubbles are, the silent coup. Shit Stain did not save GM, he merely picked the winner. It was fixed.
You can buy the ORIGINAL GM shares on the net for about a dollar. When the ORIGINAL share is barely worth toilet paper what was SAVED? Nothing and it was NEVER intended to save anything!

That makes the "bubbles" the lynch pin of the coup NOT the result OF. EVERY bubble re-centers the market and the "sides" are getting smaller and smaller.

The banking oligarchs create the bubble and pull out when the profit to be made is highest and then they implode it...watch the carnage and then jump back in and buy up shares for pennies on the dollar and the cycle starts all over. The poor get screwed and the Illuminati bankers and their thirteen bloodline families suck more wealth out of their "energy sources" which is us.

It's not a pretty picture but it's a fucking fact.

The banking oligarchs create the bubble and pull out when the profit to be made is highest and then they implode it

Exactly!!

That's why no bank CEO lost his job after the crisis and every bank made money during the crisis.

Wait, what?

But what about the 4 million people who lost their homes?
I guess they all should have become bank CEOs?

But what about the 4 million people who lost their homes?

What about them?

Sarbanes/Oxley...
The banks received no punishment for their irresponsible behavior.
Did they tell stockholders they were approving billions of dollars in loans that were definitely going to tank?
I'm sorry, but the borrowers were rejected by the software and the loans were rubber stamped.

 

[Toddsterpatriot]

Dale Smith Global control is not coming via war, global control is going to happen via the markets. That IS what these bubbles are, the silent coup. Shit Stain did not save GM, he merely picked the winner. It was fixed.
You can buy the ORIGINAL GM shares on the net for about a dollar. When the ORIGINAL share is barely worth toilet paper what was SAVED? Nothing and it was NEVER intended to save anything!

That makes the "bubbles" the lynch pin of the coup NOT the result OF. EVERY bubble re-centers the market and the "sides" are getting smaller and smaller.

The banking oligarchs create the bubble and pull out when the profit to be made is highest and then they implode it...watch the carnage and then jump back in and buy up shares for pennies on the dollar and the cycle starts all over. The poor get screwed and the Illuminati bankers and their thirteen bloodline families suck more wealth out of their "energy sources" which is us.

It's not a pretty picture but it's a fucking fact.

The banking oligarchs create the bubble and pull out when the profit to be made is highest and then they implode it

Exactly!!

That's why no bank CEO lost his job after the crisis and every bank made money during the crisis.

Wait, what?

But what about the 4 million people who lost their homes?
I guess they all should have become bank CEOs?

But what about the 4 million people who lost their homes?

What about them?

Sarbanes/Oxley...
The banks received no punishment for their irresponsible behavior.
Did they tell stockholders they were approving billions of dollars in loans that were definitely going to tank?
I'm sorry, but the borrowers were rejected by the software and the loans were rubber stamped.

Sarbanes/Oxley...

More terrible legislation.

Did they tell stockholders they were approving billions of dollars in loans that were definitely going to tank?

If banks knew they were making loans that would tank, why did they end up holding so many of those loans?

It's like the idiot above who said banks did it on purpose, to buy cheaply at the bottom of the crash.
The banks lost trillions. They weren't as smart or as prescient as some people feel.

 

[saveliberty]

The weird thing I have been seeing lately is ridiculously low lease offers for new trucks.
Kinda hard to figure out how leasing a $38,000 truck for $199 a month for 2 years, with a $2000 sign on is making any profit. Total outlay is only $6800. There is no way a 2 year old truck with 28,000 mi. plus on it only loses $6,800 in depreciation.

Leases are typically where automakers lose money when they try to increase market share. There is a shortage of good used cars, trucks and SUVs. Off lease vehicles help fill that need. People that took six to eight year loans on a vehicle are probably in big trouble. Most buy a payment, so as long as that is affordable and the vehicle works, things are probably okay. Leasing is also used to get rid of negative equity in a trade frequently.

Foreign car makers are in more trouble as most are pushing cars, which appears to be a smaller and smaller market.

 

[Indeependent]

The banking oligarchs create the bubble and pull out when the profit to be made is highest and then they implode it...watch the carnage and then jump back in and buy up shares for pennies on the dollar and the cycle starts all over. The poor get screwed and the Illuminati bankers and their thirteen bloodline families suck more wealth out of their "energy sources" which is us.

It's not a pretty picture but it's a fucking fact.

The banking oligarchs create the bubble and pull out when the profit to be made is highest and then they implode it

Exactly!!

That's why no bank CEO lost his job after the crisis and every bank made money during the crisis.

Wait, what?

But what about the 4 million people who lost their homes?
I guess they all should have become bank CEOs?

But what about the 4 million people who lost their homes?

What about them?

Sarbanes/Oxley...
The banks received no punishment for their irresponsible behavior.
Did they tell stockholders they were approving billions of dollars in loans that were definitely going to tank?
I'm sorry, but the borrowers were rejected by the software and the loans were rubber stamped.

Sarbanes/Oxley...

More terrible legislation.

Did they tell stockholders they were approving billions of dollars in loans that were definitely going to tank?

If banks knew they were making loans that would tank, why did they end up holding so many of those loans?

It's like the idiot above who said banks did it on purpose, to buy cheaply at the bottom of the crash.
The banks lost trillions. They weren't as smart or as prescient as some people feel.

Fees and commissions and thinking Japanese and Chinese banks would rather take partial payments in lieu of full payments.
And if your boss says to rubber stamp or enjoy unemployment, well...

 

[TroglocratsRdumb]

New cars are overpriced

 

[Andylusion]

william the wie AND Toddsterpatriot . Okay guys the NEXT bubble is auto loans and it will hit before the summer is over. MORE people are under water on their car loan than were home loans. A 5 year old Ford truck is simply not worth 50k on the market.

Cars were ALSO sold at below prime number. Car loans were ALSO bundled and re-sold just like home loans. Ford is killing it's ENTIRE car line except Mustang/SUV/ Ford trucks. It seems according to studies truck buyers have a lower default rate.2018 is the LAST year for the Towncar, the sedan is DEAD.

Jeep is switching to Fiat running gear, talk about going to shit. American cars are to OVER tech to OVER priced and to UNDER built. Dodge is gone okay? Dead for years. Ford is changing to save its ass. GM has been dropping models for years.

By the end of THIS decade there will only be ONE American car builder. Its FORCED globalization via the market. Right Dale Smith

Fury

So the short answer is, deregulate the auto industry, and this will go away.

The mid-size answer is, it is specifically because the government bailed out GM, by allowing them to apply their GMAC arm as a bank and get a bail out, that has setup this situation.

By bailing out the auto companies, now all the auto companies think they can continue to run their business the same risky way it was before, and if the world implodes, then the government will bail them out.

This is why you NEVER BAIL ANYONE OUT. Ever.

And the long answer is.......

This is not going to be a huge problem.

The sub-prime crash caused large problems throughout the country, because the entire industry was built on assumptions that housing prices will continue to rise, because housing prices generally continue to rise.

When housing prices started to fall, that threw an entire chunk of the economy into spiral, because they were all geared for increasing housing prices, and had no contingency plans for falling prices.

That problem can't happen with automobiles, because prices for automobiles always fall. All cars go down in value like a rock. That's where Chevy got that slogan.... Like a Rock. Values of autos goes down, like a rock.

So there won't be any banks buying automobile assets, saying "Oh my goodness! It though these would go up in value!".

Not happening.

Equally, most people grasp that cars go down in value. No one is sinking their retirement into their car, like they do a property, and thinking "Oh crud! I thought with this Ford, I'd be set for retirement!".

No one is going to do that.

The only way this becomes a major economic problem, is if the US government intervenes again into the economy. If they do, then yes, we will have problems just like before. If they don't, then this will recover pretty quickly.

One thing that irritates me, is when people freak out that 'people are underwater on their auto loans'.

Um.... Yeah. That's virtually 100% of all auto loans.

That is, almost inherent to an auto loan. Literally by definition, you will be underwater on an auto loan.

The reason most people who buy a home, are not underwater, is because the standard requirement for a prime rate loan, is 20% down payment, and the home goes up in value over time.

This is the opposite for cars. Most car loans have you pay less, or zero percent down, and the car goes down in value.

Most people are underwater on their car loan, the moment they drive it off the lot. Remember, when your car rolls over that curb at the dealership, your car loses 10% of it's value. The loan is $20,000 on a $20,000 car, and within 5 minutes, the car is worth $18,000. You are underwater on your car loan.

By the end of the first 12 months of ownership, your car loses another 10% of it's value, and unless you paid $4K down on that car in the first year, you have a loan for $19K, on a car worth $16K. You are way underwater in the first year.

And that isn't even true, because most of your payments are going towards interest on that loan. So you owe more than $20K, on a car worth less than $16,000 in the first year.

Auto loans have always been underwater. This is not new, and not worth freaking out over.

 

[Andylusion]

New cars are overpriced

If they were over priced, they wouldn't sell. I don't buy stuff that is over priced.

 

[DarkFury]

New cars are overpriced

If they were over priced, they wouldn't sell. I don't buy stuff that is over priced.

Plastic does not hold up like steel. Cars ARE over priced and under built.

 

[Andylusion]

New cars are overpriced

If they were over priced, they wouldn't sell. I don't buy stuff that is over priced.

Plastic does not hold up like steel. Cars ARE over priced and under built.

Again... if that was true, then people wouldn't be buying them.

The market suggests your opinions are not universal.

 

[Indeependent]

New cars are overpriced

If they were over priced, they wouldn't sell. I don't buy stuff that is over priced.

We're in a construction bubble right now...commercial and residential.
If the economy doesn't continue to expand or contracts just enough, it might not be so pretty.