Posted on 01/21/2015 2:51:17 PM PST by alexmark1917
The "Deflationary Vortex": Global Dollar Economy Suffers Biggest Plunge Since Lehman, Down $4 Trillion
One of the macroeconomic observations that has gotten absolutely no mention in recent months is the curious fact that while global economic growth has not imploded in recent quarters, it is because GDP has been represented, as is customary, in local currency terms. Of course, this comes as a time when local currencies (at least those which are not the USD) have been plunging against the greenback on the back of the expectations that the Fed will hike rates some time in the summer or later in 2015. Which also means that in "dollar economy" terms, i.e., converted in USD, things are not nearly as good.
In fact, as the chart below shows, the global dollar economy is not only shrinking fast, but it is doing so at the fastest pace since the Lehman collapse, having shrunk by $4 trillion, or a whopping 5%, in just the last 6 months!
http://www.zerohedge.com/news/2015-01-20/deflationary-vortex-global-dollar-economy-suffers-biggest-plunge-lehman-down-4-trill
The "Deflationary Vortex": Global Dollar Economy Suffers Biggest Plunge Since Lehman, Down $4 Trillion http://t.co/maJ2qITqPH
— zerohedge (@zerohedge) January 20, 2015
Economic prophet who foresaw the Lehman crisis is even more worried about the worlds financial system going into 2015
http://www.telegraph.co.uk/finance/economics/11358316/Central-bank-prophet-fears-QE-warfare-pushing-world-financial-system-out-of-control.html
Currency markets had a "Lehman moment" yesterday. Mark Gilbert says more of them may be in store. https://t.co/VlpH6g3OHo
— David Wilson (@TheOneDave) January 16, 2015
Recall Bear Stearns and Lehman attempts to reassure investors? History may be repeating itself after Swiss move: http://t.co/Io40t32SkH
— MarketWatch (@MarketWatch) January 16, 2015
Honda Warns Against ‘Stupid’ Auto Loans Driving U.S. Sales Gains
"A top U.S. executive at Honda Motor Co. (7267) said competitors are doing “stupid things” to boost auto sales, including making seven-year-long car loans that harm buyers.
Automakers are increasingly selling vehicles with 84-month loans that reduce monthly payments while making it tougher to repay faster than cars lose value, John Mendel, Honda’s U.S. sales chief, said in an interview. The Tokyo-based company will avoid longer-term loans even as Nissan Motor Co. (7201)tries to supplant it as the fifth-biggest automaker in the U.S., he said.
“You’re ringing the bell on a new-car sale, but that customer is saddled -- they’re stretched so thin,” Mendel said at the North American International Auto Show last week. Extended-term loans are “stupid not just for us, but for the industry.”"
"“We’ve seen this movie before, we know how it ends, and it’s not pretty,” Webb told reporters at an event before last week’s show. “But I say that it has longer to run, and we have already paid the price of admission. So we might as well stay to the end. You just keep your eyes on the exit door.”"
http://www.bloomberg.com/news/2015-01-20/honda-warns-against-stupid-auto...
FYI
Automakers are increasingly selling vehicles with 84-month loans
I know a guy that just bought a New Truck with an 8 year loan, 7 years is so yesterday.
Yeah , I am still waiting for my $2500.oo heathcare savings check promised by Obie
Social Security went up 1.3 % , but medicaid went up 3 %,
which is a loss in anybody's book , except the Fed.Gov
Whoever wrote that is an idiot.
If your currency dropped by 5% against the dollar, that doesn't mean your economy shrank by 5%. LOL!
Zerohedge doesn't mean to be a comedy website, but that's what they are.
in the last 15 months I bought 2 3/4 chevy work trucks, I paid cash(check), while I was looking at different dealerships to see who would give the best deal, NONE of them wanted to even talk to me because I WAS PAYING CASH, All they wanted to know was how much could I put down and how long I wanted to finance it for, once I told them I would just write a check for the full amount they blew me off. they earn more money on the financing than the vehicle.
Sorry , I just found out where my $2500.oo healthcare check went
Obviously, the FedGov. needs it more than me ..
www.http://www.freerepublic.com/focus/f-news/3249278/posts
"The Obama administration on Wednesday paid $490 million in cash assets to Iran and will have released a total of $11.9 billion
to the Islamic Republic by the time nuclear talks are scheduled to end in June, according to figures provided by the State Department.
Having looked at the prices of new trucks just recently, I’m not surprised he took an 8 year loan...Average price of trucks is around $40k...
But when pricing/purchasing based on monthly payment, one is bound to get the crappy end of the deal.
We’ve seen this coming in the “Health”(Extortion-Care) Shakedown racket (RICO). Where every NON-Exempt, identified by April 2015, will be forced to have or take out a “loan” on self Extortion-Care.
Ball and Chain, The Work Camp Arbeitsziehungslager
These to also to be sold off as “securities.”
The iranians must need that money for rockets and nuclear missles to protect the world from ISIS , ISIL ,... or the Joos , or somebody .
3/4 ton Chevy with Service Bed(toolboxes)all around,ladder rack, tow package,AC,cheap radio No Frills Interior. Nothing fancy inside
2013 $33028.61
2014 $35840.45
Out the Door.
"the “Health”(Extortion-Care) Shakedown racket (RICO)", and was additionally "BAIT AND SWITCH".
Interesting isn't it that medical expenses are "Bankruptcy EXEMPT" !
Debtors Prison will be re-established , owned and operated by the government who created inflation.
" WORK SHALL SET YOU FREE"
or, else a cumulative, built-up EBT card !
I bought my last vehicle with a loan. Then I quickly paid off the loan. As long as you are only charged interest on the outstanding balance, and you can make balance payments that exceed the specified payment, then you're golden.
Or have auto lenders changed the terms so you are not allowed to pre-pay?
I was looking at 2015 SuperCrew F150, 5.0L V8, 6.6 ft. bed, towing package, XLT and some other minor amenities...$42k+
Base model was around $32k...top of the line is over $50k...
I have a 2005 F150 SuperCrew XLT 2WD with the 4.6L & 5 ft. bed bought in 2007 for $20k...won’t buy new again. But it does limit your options a bit...need to be able to compromise on options and amenities.
I pay cash as well. They get incentives when you finance. The minimum number of payments is three months before you can pay it off, at least with Ford.
This may become another “Mission Accomplished” moment for him. I watched the speech. My guess he is aware that the economic data isn't starting out so well for 2015 and he's trying to get a jump start in blaming others if and when the downturn happens. He knows everything he proposed last night has zero chance in passing so he wants to come back later and say, “I proposed things that would help the economy but Congress refused to pass them.” It won't work but I'm thinking that's the plan
He is the part of the problem
Next time you buy, take the loan. You can probably negotiate a better deal if the dealer is counting interest payment kickbacks as part of the deal (and he is). Then pay off the loan.
You’ll negotiate a better deal that way.
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