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From the "what the **** is going on" file;

What Is The Fed Hiding With Its “Repo” Operations?

There has been a bunch of speculation since this is been going on, and the FOMC says this is not QE.  So WTF is it, and what the **** is going on?

Also, maybe related, but maybe not (and not stated in this article) the Treasury Department's monthly report (usually posted on the 8th day of the month - looks at calendar and see today is the 25th) has yet to be posted.  If you go to the site, you see this;

image.thumb.jpeg.d9d2beee4eaba2be9765ee5c0f22bf5f.jpeg

 

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Not gonna lie.  I don't fully understand the Repo issues.  I need to take some time and read up about it some more.

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On 10/24/2019 at 11:46 AM, Deleterious said:

Financial Times is now saying 4,000 will lose their jobs at WeWork.

 

WeDontWork

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On 10/26/2019 at 3:19 PM, Deleterious said:

Not gonna lie.  I don't fully understand the Repo issues.  I need to take some time and read up about it some more.

Most don't, and will never.  By design.  Even some of the geniuses don't know.

Don't bother.

More horse**** from the swine banks.

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My credit union is offering 3.75% checking accounts.

No minimum deposit but the rate is only good on the first $15K.  

You have to enroll in paperless billing.  Which is already done.

You have to log into your online banking account once a month.  Which is already done.

You have to use your debit card 12 times per month.  Problematic for someone who uses cash like me.  I'll probably just start using my debit card to pay for dinner to satisfy this requirement. 

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35 minutes ago, Deleterious said:

My credit union is offering 3.75% checking accounts.

No minimum deposit but the rate is only good on the first $15K.  

You have to enroll in paperless billing.  Which is already done.

You have to log into your online banking account once a month.  Which is already done.

You have to use your debit card 12 times per month.  Problematic for someone who uses cash like me.  I'll probably just start using my debit card to pay for dinner to satisfy this requirement. 

I don't think that is a bad deal.  It's hard to find 3.75 anywhere (junk bonds?).

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That sounds like a great deal.  The best I can get for a ST Bond has been 2.5% and I'm pretty sure that has dropped since I last bought them earlier in the year.   

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I haven't heard about this before, but maybe I live under a rock.  But incredible just the same; from Yahoo Finance

America’s Middle Class Is Addicted to a New Kind of Credit

A couple of highlights;

 

Quote

 

Enter the online installment loan, aimed in part at a fast expanding group of ‘near-prime’ borrowers -- those with bad, but not terrible, credit -- with limited access to traditional banking options.

Ranging anywhere from $100 to $10,000 or more, they quickly became so popular that many alternative credit providers soon began generating the bulk of their revenue from installment rather than payday loans.

 

 

 

Quote

 

For subprime lender Enova International Inc., outstanding installment loans averaged $2,123 in the second quarter, versus $420 for short-term products, according to a recent regulatory filing.

Larger loans have allowed many installment lenders to charge interest rates well in the triple digits. In many states, Enova’s NetCredit platform offers annual percentage rates between 34% and 155%.

In fact, Virginia sued NetCredit last year for avoiding state interest-rate caps, while California Governor Gavin Newsom earlier this month signed into law a measure capping interest rates on loans between $2,500 and $10,000 at 36% plus the Federal Reserve’s benchmark, currently at around 2%.

 

 

Quote

 

And of course;

Elevate’s annual revenue rose about 1,000% in the five years through December to $787 million, while Enova has seen growth of 46% in the span to $1.1 billion, according to data compiled by Bloomberg.

Subprime installment loans are now being bundled into securities for sale to bond investors, providing issuers an even lower cost of capital and expanded investor base. Earlier this month Enova priced its second-ever term securitization backed by NetCredit loans. The deal paid buyers yields between 4% and 7.75%. Its debut asset-backed security issued a year ago contained loans with

Quote

annual interest rates as high as 100%

.

The bulk of their growth has been fueled by the middle class.

 

There's your better than 3.75 percent.  Boo-Ya!!!!

 

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Jesus. You’d get better rates on the street from broken-nosed loan sharks.

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3 hours ago, smr-nj said:

Jesus. You’d get better rates on the street from broken-nosed loan sharks.

I don't think the street guys can pull off this trade; but point taken.

This is, in my mind, insanity defined.

Who said it?  "Spending money we don't have buying **** we don't need."

And the only way to do so is borrowing more money - one way or 'nother - no matter if you are a person or a business. Rolling over debt is an industry - and nothing more than a way to hide unpayable debt in many cases. Or, finding new ways to get people in debt. "Online installment loans."

Only when I thought I've seen it all.

We are living in a giant worldwide financial ponzi scheme. If the beast doesn't get fed, the gig is up.

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11 hours ago, screwball said:

I don't think the street guys can pull off this trade; but point taken.

This is, in my mind, insanity defined.

Who said it?  "Spending money we don't have buying **** we don't need."

And the only way to do so is borrowing more money - one way or 'nother - no matter if you are a person or a business. Rolling over debt is an industry - and nothing more than a way to hide unpayable debt in many cases. Or, finding new ways to get people in debt. "Online installment loans."

Only when I thought I've seen it all.

We are living in a giant worldwide financial ponzi scheme. If the beast doesn't get fed, the gig is up.

Tyler!

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23 hours ago, tiger337 said:

That sounds like a great deal.  The best I can get for a ST Bond has been 2.5% and I'm pretty sure that has dropped since I last bought them earlier in the year.   

They sure have. 

https://www.cnbc.com/bonds/ 

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11 hours ago, screwball said:

Who said it?  "Spending money we don't have buying **** we don't need."

 

Not sure what else we can expect from an economy that mainly runs on consumer spending goosed by advertising the **** out of it.

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Of course, not all online installment loans are taken out by poor people who crave iPhones, big screen TVs and gold inlays for their teeth. Sometimes people just need to pay bills and have nowhere else to turn. #tooeasytoblamethevictim

1 big thing: Americans are loading up on subsistence debt

2019-10-29-2158-change-in-household-fallback.png

Reproduced from Bloomberg using Census Bureau and BLS data; Chart: Axios Visuals

Lower- and middle-income households in the U.S. are just starting to feel the benefits of the economic recovery as wage growth has picked up over the last year, but many are still struggling because the pace of wage gains has not kept up with expenses.

Why it matters: As a result, more Americans are taking on debt in the form of personal loans, which are now outpacing credit cards and auto loans as the fastest-growing debt category in the U.S., according to data from credit reporting firm Experian.

  • Personal loan balances rose to $305 billion in Q2 2019, an increase of 12% year over year, and double the growth of credit card debt, the next-highest category.
  • The average personal loan balance has risen to $16,259. Balances of $30,000 or more have increased 15% compared to five years ago, and balances of $20,000 to $25,000 have grown 10%, Experian's data shows.

What's happening: Many consumers are taking on the debt through online installment loans, which hold longer payoff times than notorious payday loans, "but often the same sort of crippling, triple-digit interest rates," Bloomberg notes.

  • "If the payday loan’s target audience is the nation’s poor, then the installment loan is geared to all those working-class Americans who have seen their wages stagnate and unpaid bills pile up in the years since the Great Recession."
  • "In just a span of five years, online installment loans have gone from being a relatively niche offering to a red-hot industry. ... And they have done so without attracting the kind of public and regulatory backlash that hounded the payday loan," per Bloomberg.

The intrigue: The increase in lending is also the result of fintech products, which have more than doubled their market share of unsecured personal loans from 22.4% in 2015 to 49.4% in 2019, Experian says.

  • Many companies offer lower-cost alternatives to payday loans, but others are running much the same shtick.
  • Online installment loans have managed to avoid many of the regulations payday lenders have been subject to by extending payback time and increasing the amount of the loans. However, the fees are often just as high, meaning borrowers simply have more time to dig themselves into debt.

The big picture: "In the past, personal loans were often considered a last resort for people trying to escape debt," Experian's Matt Tatham wrote earlier this month. "But since financial technology firms, or fintechs, began flooding the market in recent years with unsecured personal loan offers, personal loan balances have surged."

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And we all know what they say about boats and RVs. The best two days are the day you buy them, and sell them.

I’ve thought about the scenario, sell the house, buy the RV. Once you factor in fuel, campground costs (more rent), upkeep, etc it maybe less expensive to rent for the short amount of time you actually use it.

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I am actually not too surprised that recreational goods are being consumed in great quantities.  I don't think it's necessarily RV's though.  There has been a surge in hiking, camping, biking and other outdoor activities.  I do a lot of hiking and the popular trails are packed.  You can't even find parking at trail heads unless you get up really early.   I am guilty of this kid of consumption myself as I just bought a new pair of snowshoes this week.  

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They are in the process of paving a significant bike trail through the area where I am. It’s one of those rail to trail project that finally received funding not long ago. I’ve seen a major uptick in traffic along the trails this fall. You may be right.

On the other side I’ve seen people with signs in their yard trying to sell used RVs. Seems like you can’t give those away

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Not for nothing, Zerohedge is owned and run by Russia and/or Russian political/oligarchic interests. They have a vested interest in destroying the image of America and Americans by making us look weak and stupid.

One way to characterize us as such is when it comes to spending our money by suggesting things like, I don't know, we spend all our money on RVs. What kind of idiot country would do something like that? Aren't we stupid?

Of course, RV's is not everything the category contains. It's not even most of what it contains. In fact, the #1 subcategory of expenditure in the recreational goods and vehicles category belongs to video, audio, photographic, and information processing equipment and media, and the race within the category for the consumer dollar is not particularly close:

2019-10-30_11-45-04.thumb.jpg.eb102f3cb60375c1c27ae6fb89162d29.jpg

As you might have already deduced from the subcategory names, this category of goods includes such items as televisions, audio equipment, photographic equipment, computers and peripheral equipment, software, music, sporting equipment, guns and ammunition (!), bicycles and accessories, recreational books, and musical instruments. Sure, RVs are included, but those are bundled in with the sports and recreational vehicles subcategory, along with motorcycles, bicycles, and pleasure boats and aircraft, all of which comprise a subcategory that ranks third within the overall category and, just from eyeballing it, makes up maybe 10% of the category, but probably less than that.

But that doesn't serve Zerohedge's agenda of Americans how stupid we are, perhaps in the hopes that we descend into a shame spiral of self-loathing as well as disdain for our fellow Americans, so instead, they put across the idea that the idiotic American public is spending all their money on RVs, because aren't we idiots?

**** Zerohedge. **** them with a big rubber ****, then break it off from their *** and beat them to death with the rest of it. 

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