Tag Archives: Economics

Subprime Lending Part II

From Stansberry Digest 4/28/2017: Loans for education and cars contributed to 90% of the growth in consumer debt since 2012. By 2015, roughly 25% of car loans were made to subprime borrowers. But why should the banks care? These auto loans are securitized, just like the bad mortgages were. In the last five full years, …

In China alone, over 70 million manufacturing jobs were created during the twenty-first century, far exceeding the 42 million working in manufacturing in 2012 in the United States and Europe combined. The pool of labor supplying the world trading system more than trebled in size. Advanced economies benefited from an influx of cheap consumer goods at the expense of employment in the manufacturing sector. … [China’s] share in world exports rose from 2 per cent to 12 percent between 1990 and 2013

— The End of Alchemy p. 27 In China alone, over 70 million manufacturing jobs were created during the twenty-first century, far exceeding the 42 million working in manufacturing in 2012 in the United States and Europe combined. The pool of labor supplying the world trading system more than trebled in size. Advanced economies benefited …

Capitalism, as I use the term here, is an economic system in which private owners of capital hire wage-earners to work in their businesses and pay for investment by raising finance from banks and financial markets

— The End of Alchemy p. 17 Capitalism, as I use the term here, is an economic system in which private owners of capital hire wage-earners to work in their businesses and pay for investment by raising finance from banks and financial markets.”

More people are going to want money paid out for a lot longer… from an account that has no money in it. No amount of financial smoke and mirrors will prevent the system from collapsing under its own weight

Palm Beach Letter April 2016 There are no real assets in the Social Security trust fund. Now, add a couple of more problems to the mix. Social Security has had two problems from the start. The first is retirement age. When the government designed the program in 1935, it set the retirement age at 65. …

Effort and reward were cut off from one another. The working man still had to labor. But it was the banker, gambler, speculator, lender, financier, investor, politician, or inside operator who made the money …

The Old Testament tells us that God chased Adam and Eve from the Garden of Eden with this curse: “By the sweat of your brow, you will earn your food until you return to the ground.” From then on, you worked… you earned money… you could buy bread. Or lend it out. Or invest it. …