While the US economy may have unofficially entered an industrial recession in recent months with the dip in the manufacturing ISM below the critical 50 level, one sector has continued to do surprisingly well: automotive manufacturing, as a result of vibrant car sales. The reason for this, as we have repeatedly demonstrated, has been the record surge in auto loans, which have long surpassed both total credit card debt (and the $1 trillion mark), and continue to fund an unprecedented auto buying spree as they rush to catch up to the $1.2 trillion in total student loans.

Via Investment Research Dynamics,

A friend sent me a news item from U.S. News and World Report which reported that Louisiana’s board of education is going to implement a new policy which requires all students to fill out a Free Application for Federal Student Aid in order to receive a high school diploma.

Think about that for a moment.  In order to receive a high diploma, the State of Louisiana is requiring that high school seniors fill out an application which would enable them to go into debt the moment they receive their diploma.

On Saturday, Bakr al-Baghdadi released a rare audio recording in which the ISIS leader threatened Israel (“we are getting closer to you everyday”), insisted that the Russian air campaign had not weakened the group (“hear the good news that our state is doing well"), and called upon Muslims to join the caliphate and take up arms against its enemies. 

When looking at the price of oil in 2015, Canada's Bank of Montreal admits it was wrong. Very, very wrong.

Excerpted from Doug Noland's Credit Bubble Bulletin,