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Forum Post: Fracker Boomers Busting and Subprime Car Wrecks

Posted 2 years ago on Jan. 11, 2015, 10:24 a.m. EST by agkaiser (1823) from Fredericksburg, TX
This content is user submitted and not an official statement

They're Doin' It Again!

Will we ever learn that compound profit on investment is destructive to economy and the only significant threat to the survival of the Human Race? - agk

excerpted from: http://www.nakedcapitalism.com/2015/01/subprime-spikes-auto-sales-delinquencies-soar-industry-total-denial-fallout-hit-main-street.html

"... Over 8.4% of subprime auto loans taken out in the first quarter of 2014 were already delinquent by November, according to an analysis of Equifax data by Moody's Analytics for the Wall Street Journal. That's the highest rate of early subprime delinquencies since Financial-Crisis year 2008.

"Stuffing people into cars they can't afford and ultimately may not be able to pay for is big business. Auto loans to subprime borrowers (credit scores below 640) make up over 31% of all auto loans, according to Equifax. Outstanding loan balances have soared nearly 17% over the last two years. At this rate, they'll breach the $1-trillion mark by the end of the first quarter this year...."

Fracker Boomers Busting 1/11/15

While subprime cars wreck their section of the reanimated debt economy, the shale oil fracker-boomers are busting up much of the rest. - agk

excerpted from: "Oil-Bust Bloodletting: Projects Cancelled, Layoffs Ripple to Other Areas, Default Hits Private-Equity and Pension Funds" - by Wolf Richter; January 7, 2015

http://wolfstreet.com/2015/01/07/oil-bust-bloodletting-projects-cancelled-layoffs-ripple-to-other-areas-default-hits-private-equity-and-pension-funds/

"... After dousing energy companies with super-cheap money for years in a Fed-designed drunken stupor, investors came out of it in the second half of 2014. All heck has since broken loose. Energy stocks, particularly of smaller exploration and production companies, are crashing. Energy junk-bond yields - and spreads over US Treasuries - are spiking beautifully to the highest level since the Financial Crisis.

chart: https://twitter.com/ericbeebo/status/552158833691623424/photo/1

"And new money, the fuel required to keep the mirage going, has suddenly become scarcer and a lot more expensive. With funding uncertain and oil prices collapsing, capital expenditures are getting slashed, and it's beginning to show up in the Baker Hughes rig count. Rigs drilling for oil and gas in Canada have plunged 64% in five weeks, from 438 rigs on November 26 to 156 by January 2. Canada is shutting down its drilling operations...."

Will we ever learn that compound profit on investment is destructive to economy and the only significant threat to the survival of the Human Race?

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[-] 1 points by agkaiser (1823) from Fredericksburg, TX 2 years ago

When will we ever learn?

While subprime cars wreck their section of the reanimated debt economy, the shale oil fracker-boomers are busting up much of the rest. - agk