auto derivatives

AUTO DERIVATIVES

You may have heard, and not altogether given two wet craps such as I myself felt, that subprime automobile loans delinquencies recently went from the semi-normal 2% all the way up 8%. You, as I, yawned and went about your day wondering what all the fuss was about, since it is just Poor Bitches nuking their credit, and perhaps a few shady companies going bankrupt. Well, now I'm reading that the problem is pressure on the derivatives market, shades of 2008 with sub prime mortgages. It isn't the bad loans or poorly run companies that matter. It is their hedging that poor behavior with derivatives.

*

I keep harping on derivatives, which, even at their most optimistic calculation are two to three times the size of the global economy. At worst, the exposures are one and a quarter QUADRILLION dollars. If Douche Bank alone carries $50 trillion in derivatives exposure, I'd bet on the higher number. Why is this scary? Because when a company or bank only has one half to three percent physical assets to financial bets, only a small amount of failures domino effect the whole system. We have seen this time and again, and each time is exponentially worse.

*

1987, Orange County, Russian Default and the Housing Bubble are the big ones. A small amount of bad bets have system wide repercussions. The Federal Reserve still has a Full Retard amount of toxic assets on its books from 2008, counting them as real of assets as Treasury Bonds would be ( not that they are any prize, no longer used for oil transactions as they had been-and getting worse every year ). As we speak, the repo market shenanigans are more than likely to cover the bad derivative bets made over in Germany.

*

You do understand that derivatives are not just a problem in the auto market, correct? The obvious gold and silver price suppression is orchestrated using derivatives. On some days, more paper silver is bet on than has been physically mined that year. No worries, right? Barely an inconvenience. Business as usual. Oil speculation was surely involved when the Saudi oil facilities were attacked. Like the gains from the 9/11 attacks. But the speculation is not really the focus but rather derivatives used as insurance, then a run on that insurance.

*

A sub-prime auto loan company knows its customers are a bunch of scumbags. Crackheads with jobs, still. But the intellectual capacity of a crackhead. The whole reason the auto financial industry was in the news this time was because some geriatric bimbo wanted a loan which was $800 a month, on income of under $700. Now, I don't read too much into this. The bitch could have other income, like from a cohabitant ( who wouldn't co-sign, say ). What amazed me was that she was buying a Kia. After an hour on YouTube, you should know what brands to avoid.

*

Kia is a 100k mile car. Like a Subaru ( I would cut off my own junk and use it as a marker to write on my forehead that I was a dumb ass before I ever bought another Subaru. Subaru's are the turds Toyota's make after burning rice ). They are complete junk, and are not worth anything approaching $800 a month. But they look pretty, and perhaps she has ass cancer from taking it up the pooper as a porn star, and only has a few months to live. Whatever, bitch, I'm not judging. I actually approve of your carbon emissions, just as hearty hump you to the Gore Warmers.

*

Hell, for all I know driving cars is the only thing keeping us out of an Ice Age. Sorry I'm not doing my part. At $30k a shot to save us from the glaciers, however, I think someone should just drive double, for me. The used car market was shot down in flames with Obammy's Cash For Clunkers, the mutant Kenyan. Thanks for nothing, as if doubling health care costs weren't enough. That Mick Jagger lip mother humper sure has a lasting legacy to commemorate the first butt pirate in office. Rot in Hell, Muzzie twat.

*

Anyway, no matter what kind of dumb ass you are, the finance company is not going to lose money on you, so they buy insurance against defaults. Those are your derivatives. As far as the sub-prime auto loan bank is concerned, they have zero exposure to increasing defaults. But the folks that insured that bank, they aren't going to be ass raped either, so they buy insurance on the insurance they sold. And etcetera, rinse and repeat. When one insurer in this gay train suddenly doesn't have enough money to pay off a lost bet, everyone is effected.

*

Netflix came out with a movie somewhat covering this, a few months ago. It was by the same guys that produced ( directed? ) “The Big Short”, but about a hundred times worse. “The Laundromat” is about The Panama Papers, but the beginning about the boat operators insurance gives you a flavor of derivatives insurance. If you do attempt to watch the turd, I wouldn't waste my time finishing it. Great fun was had by all, except the audience. And you must suffer through Maryl Streep. I don't recall her being so insufferable in earlier movies.

*

Now, honestly, I don't care about the auto loan market. That is more indicative of the US economy, with Detroit as the poster child, again, than having to do with the western banking sector imploding ( after all, the US economy has been offal for a long time, but the bankers did paper it over. Without those scumbags, nothing is propping it up. Certainly not the hot air from jingoistic military cheerleaders and fracking industry apologists. GAWD! How I shall cherish my victory dance as events unfold. You will rue the day you embraced optimism and positive attitudes! )

*

What concerns me is when you add the repo market with the auto subprime market, to the paper gold market ( if you forgot, Britain just refused gold reparations, again. I think if it was my countries gold I'd be shopping around for a semi-retired IRA freedom fighter with explosives experience, and send a little message to a London bank. Remember that John Cusack movie, with the paper boy? “Where's my $2?!”? [ clips HERE ] Where's my gold, bitches?! ). And what other events are unfolding that independent analysts haven't sniffed out, yet? Are the commercial real estate companies suffering from mass retail closings started to see derivatives failures yet?

*

Yeah, this suckers going down, for good this time. And if they do hyperinflate away the problem, we'll only need to wait a year or so and the fracking industry implodes, which will definitely do us all in. Consider this my 2020 forecast. We go down for good in 2020. Because I always get those predictions hilariously wrong, hopefully I'm erring on the side of doom.

( .Y. )

( today's related Amazon link click HERE )

*
note: on Tubi, the movie "The Crazies".  It is the 2010 remake, not the original.  The first one, despite trying twice ( the beginning has really nice boobs, and is a pleasure to view ), I simply couldn't watch.  Low budget drive-in drek.  At least I could watch this new one.  It isn't good, but it is watchable.  The first part is about the military attempting containment, and has boxcar deportation goodness, but the second half is just cheesy "jump scare" nonsense.  First half, thriller.  Second half, really bad horror.  The end MIGHT be worth suffering through the second half, but mileage may vary.
*
note: free for today books, EMP HERE 
*
note: sale today only, a $35 stripped lower receiver, Primary Arms HERE 
*

Please support Bison by buying through the Amazon links here ( or from http://bisonprepper.com/2.html or www.bisonbulk.blogspot.com ). Or PayPal www.paypal.me/jimd303 

*** Unless you are in extreme poverty, spend a buck a month here, by the above donation methods ( I get 4% of the Amazon sale, so you need to buy $25 worth for me to get my $1 ) or mail me some cash/check/money order or buy a book ( web site for free books, Amazon to pay just as a donation vehicle ).

*** My e-mail is: jimd303@reagan.com My address is: James M Dakin, 181 W Bullion Rd #12, Elko NV 89801-4184 ***E-Mail me if you want your name added to the weekly e-newsletter subscriber list.

*** Pay your author-no one works for free. I’m nice enough to publish for barely above Mere Book Money, so do your part.*** junk land under a grand *  Lord Bison* my bio & biblio* my web site is www.bisonprepper.com *** Wal-Mart wheat***Amazon Author Page
* By the by, all my writing is copyrighted. For the obtuse out there