Posted on 03/06/2016 8:53:47 AM PST by NRx
The world's credit boom is beginning to show dangerous signs of unraveling, ushering in a period of fresh turmoil for the over-indebted global economy, the Bank of International Settlements has warned.
The globe's top financial watchdog called time on the world's debt binge, noting that debt issuance and cross border flows in emerging economies slowed for the first time since the aftermath of the global credit crunch at the end of last year.
With financial markets thrown into fresh paroxysms in 2016, oscillating between extremes of "hope and fear", the over-leveraged world was finally approaching a day of reckoning, said Claudio Borio, the bank's chief economist.
"We may not be seeing isolated bolts from the blue, but the signs of a gathering storm that has been building for a long time", he said.
The Swiss authority - known as the "central bank of central banks" - has long rang the alarm bell over the state of global indebtedness, warning that unprecedented monetary policy was storing up problems in a world which still lumbers under weak productivity, insipid growth, and has no appetite for major reforms.
(Excerpt) Read more at telegraph.co.uk ...
This time the US public is going to be caught with their pants down. Credit defaults move very quickly. The motors that drive the economy will gum up in a few days.
For those of you thrilled with the recent bear market rally, your gains will disappear literally over night.
Watch the safe havens: USTs, Gold, Silver, and to some very small extent Bitcoin (which will happen when cash controls are tightened in some third world sh!t holes.)
Reminds me of BJBubba who came to DC with the economy already solidly recovering, got a peace dividend with housing, internet & Y2K bubble, then left town with the whole house of cards coming down — which none of the pundits noticed.
The Rats never stop gloating about their booming economies, and the public laps up the narrative. Nice work when adolescents are handed shiny no-limit credit cards, and others have to pay off the bills they run up.
Watch for gold to spike big time. It’s already started.
all I know is if an R wins in Nov the shredding machines in the white hut, IRS, DOJ, etc etc will run 24/7 until 1/20
If Trump or Cruz win you'll be right. If an Establishment Republican wins it'll be business as usual. Our 'elites' are as crooked as their 'elites'...
It's true from Detroit to Wall Street to Brussels. And always has been.
noting that debt issuance and cross border flows in emerging economies slowed for the first time since the aftermath of the global credit crunch at the end of last year.
Seriously? Pure propaganda.
Only fools buy gold going into a debt deflation.
Sell everything you have and buy CASH.
There are an awful lot of people rolling around in new cars that really shouldn’t be of late, credit standards have been dropped to move inventory. Everybody I know who is working and has a decent income is pulling out the stops to get rid of debt, driving pre-2008 cars. What I can’t figure out is, who is paying $70,000 for a loaded pickup truck? Are they all being leased? No way in my mind that a truck, no matter how nice or how loaded, commands a price higher than a mid-level Mercedes or BMW.
Completely agree with your statement, and your point about CDS.
People say they cannot fathom the "credit bubble."
Well, here it is.
Obama wants to have his cronies to buy him his Hawaiian mansion and to be installed as the new Secretary General of the United Nations before the scat hit the fan.
Mostly people who cannot afford them.
Is The Auto Loan Bubble Ready To Pop?
They have 7 year loans, lease them, and/or are up to their eyeballs in payments.
From the article:
Automotive companies have taken advantage of the cheap borrowing costs, increasing vehicle production by over 100 percent since 2009: 
In order to generate more vehicle purchases, these companies have incentivized consumers with hot, hard-to-resist offers, similar to the infamous “liar loans” and “no-money down” loans of the 2008 recession. Dealerships have increased spending on sales incentives by 14 percent since last year alone, and the banners in their shops now proudly proclaim their acceptance of any and all loan applications — “No Credit. Bad Credit. All Credit. 100 Percent Approval.” As a result, auto loans have increased by nearly $80 billion since 2009, many of which have been given to individuals with far-from-stellar credit scores. Today, almost 20 percent of all auto loans are given to individuals with credit scores below 620:
http://jalopnik.com/the-era-of-the-70-000-luxury-pickup-truck-1719222796
I’ve heard of some 7 year auto loans, which is pure crazy.
There was a credit bubble?
I expect to see this scene in the near future:
Why have the markets "rallied?" As has been the trend, it makes no plausible sense.
The traders cite "stronger than expected jobs reports."
Are you frickin kidding me? Those jobs numbers are pure lies, and they know they are lies.
The global economy is already in Recession, and the "D" word may become a terrible reality.
You’d have to have a 50% down payment for a 7 year auto loan not to be upside down at some point. The most I’ve ever spent on a vehicle was $32,000, and that was too much. It was a company vehicle, though, so I rationalized it on depreciation. Didn’t last too long, bought it in 2007, then came 2008. Very rough year for me personally and for many others. Sold it, got some money out of it because it was on a three year note. I guess I’ll end up being like some of those old folks traumatized by the Great Depression, I’ll be a skinflint for the rest of my life, lol. No way I’m ever over-extending myself again.
How do you buy CASH? Are you talking ‘stuff the mattress’ cash?
BTW, gold is going to skyrocket. You can apologize later.
Free cell phones for deadbeats? Come on, quit using my money to buy votes.
Eventually the can-kicking road will end in a cliff.
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