For months now we've been warning that the great auto 'plateau' is nothing more than a debt-fueled bubble, courtesy of the Fed, that is on the verge of collapse. Of course, bubbles typically get exposed when customer sell-through starts to slow but OEM's go on believing that 10% volume growth is possible in perpetuity...that usually results in inventory growth that looks something like this:
Authored by Christopher Whalen via The Institutional Risk Analyst blog,
“Anyone taken as an individual is tolerably sensible and reasonable – as a member of a crowd, he at once becomes a blockhead.”
Friederich von Schiller, quoted by Bernard Baruch
Authored by John Mauldin via MauldinEconomics.com,
“Companies are doing everything they can to get rid of pension plans, and they will succeed.”
– Ben Stein
“Lady Madonna, children at your feetWonder how you manage to make ends meetWho finds the money when you pay the rent?Did you think that money was heaven sent?”
– “Lady Madonna,” The Beatles
Authored by Howard Kunstler via Kunstler.com,
Authored by David Stockman via The Daily Reckoning blog,
In honor of the Donald’s “Mother of All Bomb” (MOAB) attack on the Hindu Kush mountains Thursday, let me introduce MOAD.
I’m referring to the “Mother of All Debt” crises, of course. The opening round is coming when Washington goes into shutdown mode on April 28, which happens to be Day 100 of the Donald’s reign.