I've got to admit, I though the bubble would burst around 14,500, but it seems to just keep going up -- no end in sight.
The market is also clearly disconnected from the economy. Profits are going up on the backs of the wealthy (who are buying and investing) and on the poor (who are having their job's cut to "back into profit" -- i.e., reduce expenses).
"The market is also clearly disconnected from the economy."
the entire financial sector is disconnected from the Real Economy of the 99%.
Corporate profits are at all time high sitting on $Ts of cash, while corporate taxes as total tax revenue are extremely low historically and below most advanced industrial countries.
Im bullish on C. Long term. 10, 15 years i think ill get to retire right around 50. Im betting alot on it.
I opened a 13 month CD @ an impressive rate of .45% this week…
It’s like the Feds are forcing savers into equities…
Hoping my 401k gets to ¼mil by EOY.
Exactly. Investors are accepting more risk because interest rates are being manipulated by the fed and equities are the only thing giving a decent return. The burn is coming. It's just a matter of time.
Is there any practical reason for interest rates to be higher at this point?
Why would you even bother with a CD at that rate?
I bet you could find a savings account with a higher rate.
Good question. If you think that the Fed creating trillions of new dollars to keep interest rates artificially low is a good thing then no.
Yeah, for real.
I have a savings account with AmEx. Interest rate has never fallen below .85%.
I am guessing that you would be hard pressed to find a yield that is even one percent (Today that is)…The CU that I have the CD with is offering new car loans at 1.49%
It is a great time for borrowers and terrible time for savers….
I didn't think it would enjoy such a run up. Geez I whiffed on that one.Im bullish on C. Long term. 10, 15 years i think ill get to retire right around 50. Im betting alot on it.
It's never really that great of a time for savers. You need to invest just to beat inflation.
It's a great time for borrowers with GOOD CREDIT. Banks are major tight asses with their money for normal small businesses. They can borrow at the fed window for 0 and reloan it to the government at a profit with zero risk. Why make loans to the people that drive the economy?
it's always a better idea to put your $ in stock market rather than banks but not everyone has enough brain to always make the right investment imho.
LOL @ virgin LM professing to have brains to game the stock market with his allowance from mom.
There is no point in worrying about losing gains when the stock market goes up. If you actually know what you are doing, and are not just blindly putting your money in apple or whatever, you will make money no matter if it goes up, down, or sideways.
Yes the nominal prices are going up, but its mainly just banks trading with each other using fed funny money to bid up prices. TBO it's just a s game to get dumbasses to put their retirement accounts in it again so they can pull the rug out one last time once the fed liquidity drys up.
Smoke and mirrors
Auto loans are back to pre 2008 levels…Or as one Ford finance manger says, we are back to shaking the maggot tree…We finance anyone…
Home loans have eased considerably…A person in Cali with poor credit may not get 3.5% but they are still getting great rates under 6%...
In 1979 prime was 21.5%...My truck loan was at 17%...A few years later I purchased my first house & my loan was 12.9% fixed…
California is driving small business to other states…I don’t know anyone even applying for small business loans anymore…
http://hotair.com/archives/2013/04/0...up-18-in-2012/
The Fed’s program, while aimed at bolstering the U.S. housing and labor markets, has also steered billions of dollars into riskier, more speculative corners of the economy. That’s because, with low interest rates pinching yields on their traditional investments, insurance companies, hedge funds and other ins utional investors hunger for riskier, higher-yielding securities – bonds backed by subprime auto loans, for instance.
Lenders like Exeter have rushed to meet that demand. Backed by Wall Street banks and big private-equity firms, they have been selling ever-greater amounts of subprime auto loans in the form of relatively high-yield securities and using the proceeds to fund even more lending to more subprime borrowers.
Expansion of the subprime auto business was chronicled in a 2011 Los Angeles Times series. Since then, growth has continued apace. Consider that in 2012, lenders sold $18.5 billion in securities backed by subprime auto loans, compared with $11.75 billion in 2011, according to ratings firm Standard & Poor’s. The pace has continued so far this year, with $5.7 billion of the securities issued, compared with $4.4 billion for the same period last year, according to Deutsche Bank AG. On Monday alone, three deals totaling $1.6 billion of subprime auto securities were announced by Wall Street banks.
Maybe I'm just desensitized after the housing bubble, but I don't see an auto finance bubble as something to get worked up about. Sure if you're invested in these things you can get burnt, but autos don't hold anything close to the potential for collateral damage as houses did. The individual loans are a fraction of the size and everybody knows that an automobile is only going to depreciate in value.
I will have to ask a Broker how low a credit score can be for new home purchases…
Last edited by Sportcamper; 04-12-2013 at 01:22 PM.
Expansion of the subprime auto business was chronicled in a 2011 Los Angeles Times series. Since then, growth has continued apace. Consider that in 2012, lenders sold $18.5 billion in securities backed by subprime auto loans, compared with $11.75 billion in 2011, according to ratings firm Standard & Poor's. The pace has continued so far this year, with $5.7 billion of the securities issued, compared with $4.4 billion for the same period last year, according to Deutsche Bank AG. On Monday alone, three deals totaling $1.6 billion of subprime auto securities were announced by Wall Street banks.
http://www.reuters.com/article/2013/...9320ES20130403
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