Gaze With Me Into The Credit Crystal Ball

[hegemony]

Things have stabilized? OMG.

 

Robert Shiller (of the Case Schiller index) stated this week he expects housing prices to tank an additional 20% in the next year.

 

It's not only a Grexit they're banking on, now Spain and even the Swiss are going to unravel from the Euro. There won't be any Greek bailout nor Eurobonds nor anyone else to write them a check. They have already defaulted. The Greeks and Spain are already engaged in a 'soft bank run'. There are rumors that the banks are only letting customers withdraw $50 Euros at a time, or about $75 USD.

 

The Chinese economy is tanking because the US and European households have no more discretionary dollars remaining to spend on cheap crap imported into their countries. People are harping about China lowering it's lending rates. The average middle class Chinese household SAVES 35-45% of their income.

 

Mohammed ElErian of Pimco, probably the most respected CEO of any investment house said in an interview recently that it's not IF one of the major banks here fails, but when. It's no coincidence that JPMChase was boasting about using $100B+ in liquid assets yesterday on CNBC. To cover ONLY $2B in losses?

 

We have a triple witching hour of sorts coming the end of this year. Read about the Fiscal Cliff 2012. In the meantime, I see stuff at work that truly has me concerned.

 

I'm busy being a Prepper

 

 

Switzerland does not use the Euro.

 

Alex Jones is calling.

[flacorps]

Fired up the crystal ball again... http://landolakes.patch.com/blog_posts/in-the-grip-of-the-cold-depression

[flacorps]

I wrote of war a while back. Now Jean-Claude Junker (former EU President) is now talking of it openly: http://www.zerohedge.com/contributed/2013-03-11/ultimate-threat-euro-bailout-and-austerity-racket-war

[flacorps]

War is looming once again. As is another government shutdown if the debt ceiling isn't raised again. Hard to tell which is the real threat and which is the distraction.

[flacorps]

And now we have Ukraine.

[financialevolution]

I'm a bit confused about the "reset" discussion. If mortgage rates were in 10 - 12% right now, those "ARM" mortgage holders would have something to worry about, but they are not. What am I missing here?

[flacorps]

Typically the "teaser rates" reset to something that floats. And you're right, so long as the rates don't float up, the consumer probably isn't hurt. The Fed has indicated it has no intention of raising rates. The problem is, rates stay low only so long as it prints money. The printing of money can only go on as long as inflation remains contained. Right now we can export our inflation because we are the world's reserve currency. Reserve currency status is not forever. Other nations are negotiating bilateral trade agreements that bypass the dollar as we speak. These deals will erode the dollar's reserve currency status until at some point we're not the global reserve currency any longer. One thing that keeps us the reserve currency is military might. We simply attack and take over any nation that sells its petroleum (the world's key resource) for something other than dollars (on whatever pretext is available). Or we isolate the nation with sanctions (same difference). The first such war we lose is the end of our reserve currency status. Right now we're playing in Ukraine, which is the crossroads for gas moving east to west. That would also be an intolerable loss.

 

The moment we're not the reserve currency we can no longer export our inflation. It will come home to roost. When our inflation comes home to roost, we can't keep interest rates from going up. And when that happens, everyone's adjustable rate mortgages will ratchet up until they're unable to pay.

[Occam]

I'm a bit confused about the "reset" discussion. If mortgage rates were in 10 - 12% right now, those "ARM" mortgage holders would have something to worry about, but they are not. What am I missing here?

By the time most ARM mortgage holders know they have anything to worry about it will be too late.

 

The time to swap those ARMs for 15 or 30 year fixed rates is today. Long term fixed rates are an incredible bargain now and it won't last forever.

[flacorps]

Rebels in Libya just priced their oil in something other than dollars and sold it to North Korea. The tanker carrying the oil was intercepted near Cyprus. By Navy Seals. Can't find the missing Malaysian 777, but if a tankerful of oil moves in a non-dollar-denominated transaction, by God that has to be stopped.

[drew3918]

If those reading this want a real eye-opener look into the amount of " gold" red China is collecting. Some say this year they could back the Renminbi / yuan with physical gold for a new gold standard China is buying anything & everything dealing with GOLD.. Yeppers looking more and more like fun times ahead boys and girls time to get ready for 2008 all over again but much,much,much,worse...

[Guest]

Rebels in Libya just priced their oil in something other than dollars and sold it to North Korea. The tanker carrying the oil was intercepted near Cyprus. By Navy Seals. Can't find the missing Malaysian 777, but if a tankerful of oil moves in a non-dollar-denominated transaction, by God that has to be stopped.

Rebels in Libya just priced their oil in something other than dollars and sold it to North Korea. The tanker carrying the oil was intercepted near Cyprus. By Navy Seals. Can't find the missing Malaysian 777, but if a tankerful of oil moves in a non-dollar-denominated transaction, by God that has to be stopped.

So, the Navy SEALs stole a bought-and-paid-for oil tanker?

 

And something tells me that Malaysian plane is gone for good. Bottom of the ocean, or UFO abduction. I feel sorry for those people, and thank God that I choose not to die like that.

[laynlow]

The only things cetain about the future are that we're all going to kick off sometime, and the freaking weather will NEVER warm up.

In the here and now I'm going stir crazy

[Redfoot]

 

Rebels in Libya just priced their oil in something other than dollars and sold it to North Korea. The tanker carrying the oil was intercepted near Cyprus. By Navy Seals. Can't find the missing Malaysian 777, but if a tankerful of oil moves in a non-dollar-denominated transaction, by God that has to be stopped.

Rebels in Libya just priced their oil in something other than dollars and sold it to North Korea. The tanker carrying the oil was intercepted near Cyprus. By Navy Seals. Can't find the missing Malaysian 777, but if a tankerful of oil moves in a non-dollar-denominated transaction, by God that has to be stopped.

So, the Navy SEALs stole a bought-and-paid-for oil tanker?

 

And something tells me that Malaysian plane is gone for good. Bottom of the ocean, or UFO abduction. I feel sorry for those people, and thank God that I choose not to die like that.

Not quite like that.

 

The new prime minister asked for foreign assistance (Libya had already fired on the tanker) and the US obliged. The auspice was to avoid an environmental disaster but selling in non USD probably didn't help matters much.

[flacorps]

Now it looks like Russia will get another chunk of Ukraine. People should understand though, that Ukraine's debt goes with it. And that debt is huge.

[Guest]

Think those "pings" are from the plane? Think they will find it? Think they will find credit cards when they do? And are the credit cards still good?

 

Sent from my SCH-I605 using Tapatalk

[flacorps]

If the pilot wanted to make as much trouble as possible, he did a "Miracle on the Hudson" landing and let the plane sink in one piece. That will be very tough to find down there unless one of the pingers keeps working until the ROV arrives on scene.

[flacorps]

Oh, and back to the topic: The 8 largest U.S. banks must raise more capital. Precautions like this aren't demanded unless another storm is approaching on radar. Big moves are afoot, and all the international war drums indicate that countries finding themselves in financial straits are seeking war, either as a distraction, or a way of taking someone else's treasure, or as a means of providing a logical explanation for an inevitable leg down in their living standards when the real explanation is their own leaders' cupidity and incompetence.

[hegemony]

http://www.reuters.com/article/2014/08/21/us-markets-stocks-idUSKBN0GL13K20140821

 

S&P 500 ends at record closing high after data

[chugs102]

 

http://www.reuters.com/article/2014/08/21/us-markets-stocks-idUSKBN0GL13K20140821

 

S&P 500 ends at record closing high after data

 

 

 

good news, stocks go up.

 

bad news, stocks go up even more.

 

When Yellen and company have their fingers on the CTRL-P buttons, everyone makes money. Well, only the people with money make money.

[TrevorHere]

Despite the reduction of B*, which in turn has caused outright panic for some, credit applications will continue to be approved.

 

Limits will continue to grow, credit will continue to improve and build.

 

Promo offers will be available.

[hegemony]

Despite the reduction of B*, which in turn has caused outright panic for some, credit applications will continue to be approved.

 

Limits will continue to grow, credit will continue to improve and build.

 

Promo offers will be available.

exactly

[ubercat]

Chase apparently has something to say about the future. They aren't sharing, but it aint good news...

[dansamy]

Chase apparently has something to say about the future. They aren't sharing, but it aint good news...

I think their maneuver is the one most troubling. Canary in the mine.

[hegemony]

this is not good

 

http://abovethelaw.com/2016/09/all-aboard-for-a-major-maritime-bankruptcy/

 

overweight subprime cash.

[cashnocredit]

Already seeing ripple effects in the LA port.