Network Archives

Societé General Strategist: Yellen’s Dithering Fed Is Destined for Infamy

"The Federal Reserve’s failure to recognize its role in driving the third dangerous asset bubble in 15 years will destroy the central bank’s reputation for good, said Albert Edwards, global strategist at Societe Generale. Edwards said it’s too late to avoid another massive collapse in asset prices. 'This time the Fed’s largesse has fueled another corporate debt explosion,' he said. 'The real rate of corporate borrowing is even greater than was seen during the late 1990s tech bubble. This is 100 percent attributable to the Fed’s excessively loose monetary policy.'" Continue reading →

Continue ReadingSocieté General Strategist: Yellen’s Dithering Fed Is Destined for Infamy

‘Big Short’ Genius Thinks Another Financial Crisis Is Looming

"Well, we are right back at it: trying to stimulate growth through easy money. It hasn’t worked, but it’s the only tool the Fed’s got. Meanwhile, the Fed’s policies widen the wealth gap, which feeds political extremism, forcing gridlock in Washington. It seems the world is headed toward negative real interest rates on a global scale. This is toxic. Interest rates are used to price risk, and so in the current environment, the risk-pricing mechanism is broken. That is not healthy for an economy. We are building up terrific stresses in the system, and any fault lines there will certainly harm the outlook." Continue reading →

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China halts stock market again after CSI 300 plunges more than 7%

"China's stocks were suspended from all trade on Thursday after theCSI300 tumbled more than 7 percent in early trade, triggering the market's circuit breaker for a second time this week. That drop-kicked stock markets across Asia, which were already wallowing after a weaker open amid concerns over China's swooning currency and economic slowdown as well as falling oil prices. China's securities regulator also issued new rules to restrict the percentage of shares major shareholders in listed companies can sell every three months, in an attempt to stabilize markets. Shareholders are not allowed to sell more than 1 percent of a company's share in that period." Continue reading →

Continue ReadingChina halts stock market again after CSI 300 plunges more than 7%

Virginia Senate Bill Would Curb “Policing for Profit” via Asset Forfeiture, But Federal Loophole Remains

RICHMOND, Va. (Jan. 6, 2016) – A bill filed in the Virginia Senate for the 2016 legislative session would reform the state’s asset forfeiture laws, making it more difficult for police to seize property. But a loophole in the legislation would allow law enforcement to work with the feds to skirt the more stringent state law. Sen.…

Continue ReadingVirginia Senate Bill Would Curb “Policing for Profit” via Asset Forfeiture, But Federal Loophole Remains

New Hampshire Bills Would Legalize the Recreational Use of Marijuana, Help Nullify Federal Prohibition

CONCORD, N.H. (Jan. 6, 2015) – Three bills introduced in the New Hampshire legislature would legalize marijuana for recreational use. Passage of any would not only legalize marijuana in the Live Free or Die State, but would also take a big step toward nullifying federal cannabis prohibition in practice in the state. The three proposed bills…

Continue ReadingNew Hampshire Bills Would Legalize the Recreational Use of Marijuana, Help Nullify Federal Prohibition

New York Bill would Support Parents’ Common Core Opt Out Efforts

ALBANY, N.Y., (Jan. 6, 2015) – A bill proposed in the New York legislature would allow certain students to opt out of Common Core Standards and testing, a small step toward nullifying nationalized education in the state. The law would provide additional backing to some of the hundreds of thousands of New York parents who have already…

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Right to Try Laws Taking on Some FDA Restrictions Now In Effect In Oregon and Illinois

Patients facing life-threatening illnesses now have more treatment options open to them in Illinois and Oregon thanks to new laws tearing down federal roadblocks that went into effect on New Year’s Day. These new “Right to Try” laws effectively nullify in practice some Food and Drug Administration (FDA) rules that stop terminally ill patients from…

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Is ‘Peak Auto’ the Latest Threat to the Markets?

"More than 19% of today’s loans are going to subprime or 'deep subprime' borrowers — and total volume for lower credit score borrowers is just shy of its 2005 record. Indeed, lenders are basically giving loans to anyone with a pulse. The New York Fed recently found that application rejection rates have dropped to 3.3% from more than 10% a few years ago. The average loan now stretches out to a record 67 months, while 27% of U.S. loans sport terms of six to seven years. That’s because buyers can’t afford their monthly payments any other way. Bottom line: If you own auto stocks or stocks leveraged to the auto industry, sell them." Continue reading →

Continue ReadingIs ‘Peak Auto’ the Latest Threat to the Markets?

US auto loans hit $1 trillion for first time

"The loan balances have been driven up by a combination of three factors -- strong car sales, rising car prices and low interest rates. Interest rates are low. Borrowers with top credit scores can get loans for less than 3%. But the amount owed is up 11%, a sign of the increase in the size of car loans due to rising prices. The average amount borrowed is about $21,700, and buyers owe nearly $18,000 on average. The average new car purchase price now stands at $32,529, according to sales tracker TrueCar. The average car loan balance is rising faster than it is for mortgage loans, according to TransUnion. The average payment now stands at just under $400 a month." Continue reading →

Continue ReadingUS auto loans hit $1 trillion for first time

HK property developers push HK$1.3 billion in home loans to buyers

"Facing fierce competition amid a tightening of mortgage policies, a growing number of developers have been skirting bank regulations by providing home loans of up to 95 per cent of the purchase price through wholly owned financial institutions to lure buyers. They began offering mortgage loans after the maximum loan-to-value (LTV) ratio for bank mortgages for self-use residential properties with a value below HK$7 million was lowered from 70 per cent to 60 per cent in February last year. That meant home buyers needed to make a 40 per cent initial down payment, up from 30 per cent, when purchasing an apartment." Continue reading →

Continue ReadingHK property developers push HK$1.3 billion in home loans to buyers