While You Were Sleeping, Lehman Just Happened...

INVESTMENT WATCH BLOG ^

[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...

[eyeamok]

Yeah we went through that, GM gave me all the incentives anyway, I think it was about $7k, mainly because I have bought 6 of them. I only drive them for 4-5 years and then it needs to be replaced. I forgot that I also had Lift Gates put on by the dealer, Included in that price.

I do not allow anyone to run my credit EVER, Identity theft is just like pregnancy, abstinence works every time it is tried, so I abstain from ALL electronic records requests and transactions.

[eyeamok]

I know that, But because I have bought 6 of them in the last 20 years they gave me all the incentives any way. I just did it with Wells Fargo for the House I bought last year, I had the money to pay cash for the house,but it would have left me broke , And they treated me like Dog Crap when applying for mortgage. I put 1/3 $50k down and paid it off in 10 months,$10k per month. They Lost money Big Time on this loan, and they deserved it.

[minnesota_bound]

$4 <- $... I bought a 2003 Honda Accord last year and saw the extended loan times. I always wondered how someone affords the big trucks and SUV’s. No way I would do such a loan. Bring a calculator with you when you go buy a car. It will save you money.

[crusty old prospector]

You are wise. I cringe anytime someone asks for my SSN. I leave it blank. One of my kids wanted it the other day to co-sign for an apartment at college. I gave them my wife’s as no accounts are linked to her number.

[Robert A Cook PE]

But inflation is zero. Right?

A “box” of wine that was only 16.00 is now 23.00