It’s classic subprime: hasty loans, rapid defaults, and, at times, outright fraud. Only this isn’t the U.S. housing market circa 2007. It’s the U.S. auto industry circa 2017. A decade after the mortgage debacle, the financial industry has embraced another type of subprime debt: auto loans. And, like last time, the risks are spreading as they’re bundled into securities for investors worldwide.(Snip) Few things capture this phenomenon like the partnership between Fiat Chrysler Automobiles NV and Banco Santander SA. Since 2013, as U.S. car sales soared, the two have built one of the industry’s most powerful subprime machines. Details of
Comments: Biggest problem is with Fiat-Chrysler and a foreign lender. Loans were handed out like candy to move vehicles off the lot.
I had a golden opportunity to get invited to participate in a business of buying up brand new "show room surplus" cars. I went to the Oklahoma City Auto Auction where new cars go to die at the massive (actually unbelieveable!!) combined car redistribution center there. Due to some shady partners, I back out of the deal at the last minute. But, here is what I learned-
Every year manufacturers make a percentage gamble on how many cars the public will buy that year. For example: If they guess 200,000 and the public only buys up 170,000, that year, 30,000 brand new cars have to be disposed of somehow. Incredibly, a large number of them are shredded! But, interested used car dealers and brokers can buy lots of 10 or 20 of these cars for pennies on the dollar at auction. If you hit the place at just the right time, you can buy a brand new, never owned Cadillac for a few thousand dollars. But, your timing has to be perfect and you have to have hard, cold cash and a truck ready to haul them off immediately. You also have to have all the licenses and permits in order. It´s quite complicated.
So, I can understand why the makers want all the most liberal lending policies in place to buy up their annual output as much as possible. It is a system that is perfectly suited for fraud and manipulation because there is so much pressure to just move those cars. Makers should not be so greedy because the cost of scrapping a percentage of their annual production output is figured into the price of all cars sold.
But, that is the nature of business; Greed and more greed. Make that money, get that bonus! The end completely justifies the process. And it does not matter who gets hurt.
America runs on Dunkin’, but the NYPD doesn´t. Two New York City police officers allege that they were denied service at a Brooklyn Dunkin’ Donuts by an employee with a bias against cops. The New York Post reports that Detectives’ Endowment Association president Michael Palladino is leading a boycott against the chain. Though admitting that this was most likely an isolated incident, Palladino said that the discrimination was “disgraceful and it should not go unattended.” Until Dunkin’ Donuts issues an official apology, Palladino has asked detectives and their families to “refrain from patronizing [its] stores.” Law-enforcement sources told the Post that
BOSTON — U.S. Sen. Elizabeth Warren won´t face voters for more than a year, but the broad outlines of the effort to unseat the Massachusetts Democrat, and her re-election pitch to voters, are taking shape. Two Republicans have announced their candidacies, two others are said to be weighing runs, and conservative political groups are chipping away at the candidate. Still, Warren enjoys enormous advantages, including a national base of support, a fat campaign account and solid poll numbers. Hanging over everything is the question of whether Warren will run for the White House in 2020. THE CANDIDATE After she was first
A summer camp for transgender and “gender fluid” children is taking in children as young as 4. The camp seems like any other. Children arrive with a packed lunch, make friendship bracelets, sing songs and get silly. But each day at check-in, campers make a nametag with their pronoun of choice. Some opt for “she” or “he” while others choose “they” or something else. And enrollment at the camp is booming. The number of children at the San Francisco Bay area camp has tripled to about 60 youngsters, from age 4 to 12, since it opened three summers ago, with
NEW ORLEANS — Parts of New Orleans flooded after a heavy weekend rainfall that officials said overwhelmed the city´s pump stations. NOLA.com reports city officials said Sunday that some neighborhoods saw between 8 and 10 inches (20 and 25 centimeters) of rain over a few hours Saturday. That was too much for the Sewerage & Water Board´s 24 pump stations to cope with even though all were operating. Deputy Mayor Ryan Berni told reporters the city has no immediate plans to request an emergency declaration from the state, but that could change as the city collects more information on flood
The National Weather Service on Sunday confirmed an EF2 tornado — with winds of 111-135 mph — touched down in midtown Tulsa. Most of those hurt had lacerations and other injuries, but most were treated and released, a hospital spokeswoman said. No deaths were reported. The area that received the most damage is 41st to 51st streets from Harvard to Mingo. The shopping corridor at 41st and Yale is closed currently. The city of Tulsa has closed 41st-51st streets between Memorial and Sheridan, and 41st from Yale to Sheridan. Deputy Mayor Michael Junk, who is acting mayor while Mayor G.T.
The warm and humid summer-like stretch has come to an end for now. It appears someone told parts of Wisconsin to chill out today with temperatures dipping into the 50´s this morning. People working out at Veterans Park had to bundle up. "I was really surprised this morning. I woke up and I saw the weather. I was wondering if I should wear a jacket. I see a lot of people wearing jackets today," said Joe Laurendi. In Riverwest, Lexi Peterson grabbed a jacket to walk her dog Grettel. It doesn´t feel like the dog days of summer right now
Pollution from illegal marijuana farms deep in California´s national forests is far worse than previously thought, and has turned thousands of acres into waste dumps so toxic that simply touching plants has landed law enforcement officers in the hospital. The volume of banned or restricted pesticides and illegally applied fertilizers in the woods dwarfs estimates by the U.S. Forest Service in 2014, when a top enforcement official testified that the pollution was threatening forest land in California and other states. California accounts for more than 90 percent of illegal U.S. marijuana farming, with much of it exported to other states from
NEWARK, N.J. — Fiery Democratic U.S. Rep. Maxine Waters was welcomed like a contemporary rock star when she entered the 2017 Black Girls Rock Awards, as the audience screamed loudly and gave her the night´s rowdiest and wildest applause. (Snip) "I want you to know, if it was not for the love and respect shown to me by black women, those right-wing ultra conservatives ... they would have me believe I´m too black, I´m too confrontational, I´m too tough, and I´m too disrespectful of them," she said. "But now I know I´m simply a strong, black woman." "I don´t care
LAWRENCE, Kan. — As she held her two-week-old grandson, Margarita Fitzpatrick prepared for a family dinner she´d never forget. Then she cried. (Snip) Without much evidence, President Donald Trump has often referred to millions of people voting illegally in this country. Fitzpatrick now admits she did cast two ballots improperly — but she insists it was not intentional. Her story is one that stretches over three presidential administrations: those of Presidents George W. Bush, Barack Obama and Donald Trump. It´s a story that sheds light on potential gaps in federal law, the limits of the judicial system and the agonizing
A group of fans who believe Colin Kaepernick is being blackballed by the NFL have launched a petition threatening to boycott the league if he isn´t signed to a roster this season. The Change.org petition, titled #NoKaepernickNoNFL, has received more than 31,000 signatures as of Saturday afternoon. "We understand (the) NFL is very important to you. We also understand the purpose of Colin Kaepernick´s protest is FAR more important than any games you will ever watch," the petition reads. "Simply put, if things stay the same for the way America - where ´all men are created equal´ - treats people
Stephen Miller, a senior policy adviser to President Trump, is reportedly under consideration to succeed Anthony Scaramucci as White House communications director. Miller isn´t the frontrunner for the job, Axios reported Saturday. But White House chief strategist Steve Bannon reportedly likes the idea. Miller, a former staffer to then-Sen. Jeff Sessions (R-Ala.), received praise from his colleagues after sparring with CNN reporter Jim Acosta during a press briefing Wednesday. In that exchange, Miller fiercely defended a White House-backed bill that would establish a merit-based immigration system and accused Acosta of having a "cosmopolitan bias." Trump applauded Miller´s performance at the press
ORLANDO - Right now, there’s a flurry of political activity in western Orange County. With a special legislative election afoot, four Republicans are running vigorous campaigns, debating conservative ideas and collecting hundreds of thousands of dollars in campaign cash in House District 44, which envelops Disney, Winter Garden, Dr. Phillips and west Orlando. So, the Republicans are all in. One the other side of the aisle is a single Democratic candidate without much name ID, support or money. As of his last report, he had raised $3,131 … with most of that coming from the candidate’s own pocket. All this
California Democratic Representative Maxine Waters wouldn’t rule out the concept of an all-black political party when asked about it on Monday. Waters joined “The Breakfast Club” radio show on Monday morning and was asked if it was time for black people to form their own political party. “No, not at this point,” Waters said. “You have to show that you’re willing and you’re able to put the numbers together and exercise your influence.” “We still are not voting our influence yet,” she continued. “What we should do is organize our power, exercise our power, particularly in the Democratic Party because
Hillary Clinton has hired two political operatives from her 2016 presidential campaign to help manage Onward Together, the project she founded this spring with former governor Howard Dean to fund and support a coalition of Democratic groups led by activists and organizers.The new additions, Emmy Ruiz and Adam Parkhomenko, held central roles on Clinton’s campaign: Ruiz delivered key victories as state director in Nevada during the primary and in Colorado during the general election; Parkhomenko worked in headquarters as her director of grassroots engagement before moving to the Democratic National Committee. Both served on Clinton’s first presidential bid in 2008.
The front page of the Saturday Metro section of The Washington Post offered breaking news on Christian attitudes. “Christians are far more likely than non-Christians to blame poverty on a lack of effort, a poll found.” This poll from the Post and the liberal Kaiser Family Foundation is three months old, taken from April 13 to May 1. This is not just a poll question; it’s begging for overgeneralization, with “the poor are mostly lazy” being judged by liberals as akin to “Muslims are mostly terrorists” or “Catholic priests are mostly child abusers.” As a citizen, I’d refuse to answer
One-by-one, key players at Fox News are being taken out by allegations that remain untested in any judicial proceedings. On Friday evening August 4 at 8:23 PM, an article was published at HuffPost: “Fox News Host Sent Unsolicited Lewd Text Messages To Colleagues, Sources Say.” The article had obviously been in preparation for some time, since it included a statement from Bolling’s attorney defending his client. The host is Eric Bolling, 54, a friend of President Donald Trump, and a defender of the president in his role as a prominent anchor and co-host on the Fox News channel (FNC).
The Republican Party should have cut off Donald Trump’s “birther” movement in its infancy, an anti-Trump Republican senator said Sunday. Sen. Jeff Flake of Arizona said he regrets that his fellow Republicans kept quiet years ago as Trump rallied his phony conspiracy theory that former President Barack Obama wasn’t born in the United States. “I wish that we, as a party, would have stood up...when the birtherism thing was going along,” Flake said on NBC News´ “Meet the Press.” “That was particularly ugly.” Flake also condemned his party for supporting Trump’s “lock her up” campaign rally chants about Hillary Clinton,
Hillary Clinton wants to preach. That’s what she told Bill Shillady, her long-time pastor, at a recent photo shoot for his new book about the daily devotionals he sent her during the 2016 campaign. Scattered bits of reporting suggest that ministry has always been a secret dream of the two-time presidential candidate: Last fall, the former Newsweek editor Kenneth Woodward revealed that Clinton told him in 1994 that she thought “all the time” about becoming an ordained Methodist minister. She asked him not to write about it, though: “It will make me seem much too pious.” The incident perfectly captures
The Department of Justice on Friday released 413 pages of emails related to a controversial private meeting between former President Bill Clinton and then-Attorney General Loretta Lynch during the FBI’s investigation into then-presidential-candidate Hillary Clinton’s Benghazi emails. The FBI said earlier such records did not exist. This discharge of information is the result of a lawsuit filed against the DOJ by the American Council for Law and Justice (ACLJ) in November 2016. The newly-released emails mostly include DOJ officials’ conversations with reporters, who were seeking comment on the meeting between Lynch and the former president on an airport tarmac in
Three-quarters of Americans do not trust President Trump, according to a new CNN poll published Monday night. Six months into his presidency, 38 percent of those polled said they approve of Trump´s performance, while 56 percent say they disapprove. Trump is also faring worse with his base, the poll showed. Among Republicans, his strong approval rating fell from 73 percent in February to 59 percent now. Among non-college educated white people, 35 percent of those polled strongly approve of Trump, down 12 points since February. The CNN poll was conducted by SSRS by telephone Aug. 3 through Aug. 6 among
WASHINGTON — Senators Tom Cotton and Ben Sasse have already been to Iowa this year, Gov. John Kasich is eyeing a return visit to New Hampshire, and Mike Pence’s schedule is so full of political events that Republicans joke that he is acting more like a second-term vice president hoping to clear the field than a No. 2 sworn in a little over six months ago. President Trump’s first term is ostensibly just warming up, but luminaries in his own party have begun what amounts to a shadow campaign for 2020 — as if the current occupant of 1600 Pennsylvania
Deyon Kaigler said in December that he was done stealing cars. His friends were still posting videos of high-speed joyrides to Facebook, wearing key fobs on lanyards around their necks. But Deyon, 16, had decided it was too dangerous. "I value my life," he said. "I´m not trying to be dead." Just eight months later, on Sunday morning, three boys died and Deyon was led away in handcuffs after a fiery, high-speed crash sent a stolen Ford Explorer pinwheeling through the air down Tampa Road in Palm Harbor, bursting into flames. Eight teenage car thieves from Pinellas have now died in the
Rep Maxine Waters (D-CA) has been getting quite a bit of attention lately for her strong opposition to President Trump and frequent calls for his impeachment. She called President Trump “the worst” president she’s ever seen in a recent interview with “The Breakfast Club” saying he “believes in nothing. I think he believes in nothing," Waters said. "I think that he cares about nothing. I think that he´s capable of doing outrageous things. I believe it is possible to impeach him,” she said. “How long is it going to take? I don´t know, but I give it to about December."
On the morning of Aug. 6, 1945, Setsuko Nakamura sat with her Grade 8 classmates on the floor of her private girls school, listening to a lecture about duty to the emperor. Setsuko and some of her classmates had been training as decoding assistants for the Japanese army, in preparation for the final invasion by Allied forces. But the Allies didn’t invade Hiroshima. At 8:15 a.m., Setsuko saw a blinding blue-white flash out the window; she felt her body fly through the air. When she regained consciousness, the schoolroom had collapsed around her. It was dark as night and silent