On Thursday night, we brought you a first-hand account of what’s really going on in subprime auto.
According to a reader who works in the industry, the securitization machine may be grinding to a halt for deals that are stuffed with loans to borrowers with low (or no) FICOs. Here’s an excerpt:
Submitted by Lance Roberts via RealInvestmentAdvice.com,
The past two week’s have been full of Central Bank interventions starting with the ECB last week and culminating with a more accommodative Fed and BOJ interventions this week.
As stated earlier this week:
What happens next?
Well it's been another week... As Goldman said this was the 4th most dovish Fed surprise since 2008
While "most shorted" stocks have ripped higher in the last few weeks, and "weak balance sheet" stocks have soared, the real winner in this "dash for trash" is... garbage!!
It appears investors can't get enough of "Waste & Disposal" stocks...
h/t @jlyonsfundmgmnt
The last time this index surged so far so fast was Oct 2011... and it fell 13% in the following month.
As it becomes ever more clear that ZIRP and NIRP are not only entirely inadequate when it comes to reviving global growth and trade, but in fact may be counterproductive for a number of reasons, the world is looking for other answers.