Posts Tagged ‘Automakers’

SIGTARP Calls Out Tim Geithner On Various Violations Including Data Manipulation, Lack Of Transparency, “Cruel” Cynicism, And Gross Incompetence

SIGTARP Calls Out Tim Geithner On Various Violations Including Data Manipulation, Lack Of Transparency, "Cruel" Cynicism, And Gross Incompetence

Neil BarofskyCourtesy of Tyler Durden

SigTarp Neil Barofsky has just released the most scathing critique of all the idiots in the administration, with a particular soft spot for Tim Geithner.

On the failure of TARP to increase lending:

As these quarterly reports to congress have well chronicled and as Treasury itself recently conceded in its acknowledgement that "banks continue to report falling loan balances," TARP has failed to "increase lending" with small businesses in particular unable to secured badly needed credit. Indeed, even now, overall lending continues to contract, despite the hundreds of billions of TARP dollars provided to banks with the express purpose to increase lending.

On TARP’s sole success of boosting Wall Street bonuses:

While large bonuses are returning to Wall Street, the nation’s poverty rate increased from 13.2% in 2008 to 14.3% in 2009, and for far too many, the recession has ended in name only.

On TARP’s failure in general:

Finally, the most specific of TARP’s Main Street goals, "preserving homeownership" has so far fallen woefully short, with TARP’s portion of the Administration’s mortgage modification program yielding only approximately 207,000 ongoing permanent modifications since TARP’s inception, a number that stands in stark contrast to the 5.5 million homes receiving foreclosure filings and more than 1.7 million homes that have been lost to foreclosure since January 2009.

On the Treasury’s scam in minimizing publicized AIG losses, and on Geithner as a Wall Street puppet whose actions are increasingly destroying public faith in the government:

While SIGTARP offers no opinion on the appropriateness or accuracy of the valuation contained in the Retrospective, we believe that the Retrospective fails to meet basic transparency standards by failing to disclose: (1) that the new lower estimate followed a change in the methodology that Treasury previously used to calculate expected losses on its AIG investment; and (2) that Treasury would be required by its auditors to use the older, and presumably less favorable, methodology in the official audited financials statements. To avoid potential confusion, Treasury should have disclosed that it had changed its valuation methodology and should have published a side-by-side comparison of its new numbers with what the projected losses would be under the auditor-approved methodology that Treasury had used previously and will


continue reading


Tags: , , , , , , , , , , , , , , , , , , , , , ,




Japan Redux: A Video Case Study Of The Upcoming U.S. Lost Decade

Interesting video--argues for eventual hyperinflation in the US. – Ilene

Japan Redux: A Video Case Study Of The Upcoming U.S. Lost Decade

Courtesy of Tyler Durden

Whether one believes in inflation or deflation, one thing is certain: in many ways the current US experience finds numerous parallels to what has been happening in Japan for not one but two decades. While major economic, sociological and financial differences do exist, the key issue remains each respective central bank’s failed attempts to reflate its economy. While long a mainstay of Japan, if the first failed version of our own QE, which pumped $1.7 trillion of new liquidity into the system, is any indication, future comparable efforts by our own Fed will be met with the same outcome (and hopefully with the same political result: the half life of an average Japanese prime minister is 6 months – if only our career politicos knew their tenure in office could be capped at half a year…).

There is of course the "tipping point" optionality discussed earlier by Ambrose Evans-Pritchard, when comparing the hyperinflationary timeline during the Weimar republic, which noted that it took just a few months for the economy to slide from a period of price stability to outright hyperinflation. Either way, for an ironic look at the Japanese deflation scenario, targeted more at novices although everyone will likely learning something from it, we present the following informative clip from, ironically, the National Inflation Association, which asks whether Japan is a blueprint for America’s imminent lost decade(s). 


Tags: , , , , , , , , , , , , ,




You Can’t Keep a Good Brand Down… But You Can Try

You Can’t Keep a Good Brand Down… But You Can Try

GM cars are displayed at GM global headquarters in Detroit, Michigan

Courtesy of Travis at Zero Hedge 

GM today reported that they will reinstate over half, 600 of the 1,100 dealership franchises they told to get lost last year- in an effort to keep the other some 5,000 dealerships "healthy and profitable."  The lucky 600 will be getting letters asking to stay with the automaker, that’s if they haven’t already closed their doors forever due to the fact that 1) car sales suck despite an upbeat report earlier in the week 2) some people would argue that GM cars suck and finally 3) the GM brand may be discontinued forever a la Pontiac, Saturn, and Hummer.

A consortion of dealerships have been fighting the Detroit giant, citing they’ve been treated unfairly and that GM was vague in their decisions and thoughts on what dealers are actually profitable, and which ones are not.

Chrysler too, which slashed almost 800 of it’s franchises is also reconsidering the cuts; according to the Associated Press "the decision was a compromise meant to avoid federal legislation that would require that the showrooms be kept open."

Under the revised cutting procedures, dealers would "get face-to-face reviews, binding arbitration and faster payments to help dealers slated for shutdown."

As published by the Associated Press on Yahoo!:

"Congress-brokered talks between dealer groups and the automakers began in September. But those talks stalled over disputes about the review process for targeted dealerships and other issues. Looming over the fight has been the threat of federal legislation to deal with the closures. Lawmakers warned that if a deal wasn’t reached, that legislation would move forward.

The White House has opposed the legislation over concerns that it could hurt GM’s and Chrysler’s efforts to rebound from their government-led bankruptcies."

I guess Congress figures, they’re not done launching torpedos at Toyota- better keep some of these domestic dealerships open to sop-up the overage from Toyota’s once ivory, and now bloodied domestic tower of safety and reliability. 


Tags: , , , ,




How The Government Is Manipulating And Distorting Markets In Everything

Government manipulation--the slide show.  Is this the "change" we voted for? – Ilene

How The Government Is Manipulating And Distorting Markets In Everything

obama biden worried tbiCourtesy of Joe Weisenthal at Clusterstock

A recent CBO report estimated that the government spends about $300 billion to intervene in the housing market each year. That’s based on a range of activities, from direct subsidies to homebuyers, to the mortgage interest tax deduction, and the backstop of Fannie and Freddie.

And thus it’s no surprise that the housing market doesn’t work like other markets, and that we had a major bubble there. Even now, Goldman Sachs estimates, the government is adding at least 5% to the cost of each home, through its various "affordability" measures.

But it’s not just housing. Virtually every important sector of the economy is being manipulated in some way.

Check ‘em out >>

 


Tags: , , , , , , ,




August Car Sales Sucked!

Click here for a FREE, 90-day trial subscription to our PSW Report!

August Car Sales Sucked!

cash-for-clunkers-obama.jpgCourtesy of Joe Weisenthal at Clusterstock

Jeez. Here we were thinking that the auto companies would come out with good numbers today, but that they’d need a big asterisk due to Cash-for-Clunkers.

But nope. They were just bad. Ford (F) missed lofty expectations, and Chrysler’s monthly sales actually showed a dip, when analysts were expecting a gain.

Cash-for-Clunkers sure was a hit, but mainly for the foreign automakers it seems.

See Also: 

France Might Extend Cash For Clunkers Into 2010

 

 


Tags: , , , , , , , , ,




Used Cars and the Inflation / Deflation Tug of War

Used car prices are going up – is this a sign of recovery and inflation or a complicated symptom of a deflationary environment?  This debate illustrates, perhaps, why the same economic data can be interpreted in opposite manners by intelligent people. – Ilene

Used Cars and the Inflation / Deflation Tug of War

Courtesy of Jake at Econompic Data

Scott Grannis, of the blog California Beach Pundit, is quickly becoming my new favorite blogger to disagree with because he:

  • Provides intriguing data
  • Has a strong opinion
  • Supports his opinion well
  • These opinions run counter (in almost every case) to mine

In general he believes in the recovery and inflation, whereas I don’t and believe deflation is a real possibility.

One example was yesterday’s post regarding ISM Prices. In his view, the jump in ISM prices (by jump I mean they finally didn’t fall month over month) means deflation is no longer a threat. On the other hand, I believe that may be a result of the temporary jump we saw in commodities. He continues his ‘don’t worry about deflation’ message with yesterday’s post that (again) gave me the exact OPPOSITE initial reaction. Here goes:

According to Manheim Consulting, used vehicle prices jumped 16.4% in the first half of 2009 on a seasonally adjusted basis. Once more we are reminded that a weak economy and rising unemployment do not necessarily create deflationary conditions.

In other words, an increase in the price of used cars (off a large previous fall) proves that deflation is no longer an issue and we should (if anything) worry about inflation.

Manheim Used Vehicle Value Index

He adds:

I think the rise in prices also has something to do with the return of money velocity. Consumers retrenched violently in the fourth quarter of last year, hoarding cash and repaying debt in the face of tremendous uncertainty. Money velocity collapsed. Now that confidence is returning, money is getting spent again. The economy is recovering some of the ground it lost.

Using what I refer to as the logic test, this makes no sense. If people are trading down (i.e. increasing demand for a cheaper / used good) this has deflation written all over it (not necessarily for that good, but for the broader economy). My logic and posted in


continue reading


Tags: , , ,




Toyota Set To Become Top Dog In The U.S.

Courtesy of Tom Lindmark, But Then What?

Toyota Set To Become Top Dog In The U.S.

Depending upon your philosophical bent, this is either good news or another sign that the Apocalypse is Top Dog, Toyotanear.

The WSJ is reporting that Toyota is slated to take over the title as the number 1 seller of light vehicles in the U.S.

The bankruptcies of General Motors and Chrysler are changing the landscape of the auto industry. The two U.S. companies are shuttering plants, shedding dealers and reducing their product lines.

As a result, Toyota Motor will become the largest seller of light vehicles in the U.S. It has held the top spot globally since last year.

The Japanese auto maker won’t be the only beneficiary of the two companies’ woes. But in terms of status, market clout and bragging rights, Toyota will be the No. 1 winner.

Its share of the North American light-truck and car market probably will rise to around 20% from 18.4%. GM will end up in second place with 13% to 16% — with Ford hot on its tail.

Although Toyota stock doesn’t change hands directly in the U.S., the company’s American depositary shares (TM), which represent them, are listed on the New York Stock Exchange.

And, at a recent price of around $76 — about $30 below their 52-week high — they’re a good bet for long-term investors.

The Journal suggests that the stock might be a good long-term buy. They point out that analysts suggest it could hit $115 and that it hit $137 a couple of years ago. Maybe, but just a caveat. Toyota and others now have the most fearsome of competitors  – government owned companies. In the long run that probably means success for the competitors as political decisions trump business common sense. In the short run it could be formidable as the government does whatever is necessary to prove it didn’t make the stupid decision that everyone acknowledges it did.

Buy the stock at your peril.


Tags: , , , , ,




Auto Companies Suppliers Next In Line For A Bailout

Courtesy of Tom Lindman of But Then What?

Auto Companies Suppliers Next In Line For A Bailout

The black hole that is the auto industry needs to suck in more cash. The parts suppliers are once again lining up for federal aid.

From the WSJ:

U.S. auto-parts companies plan to ask the Obama administration for as much as $10 billion in new aid as the General Motors Corp. and Chrysler LLC bankruptcies deepen the suppliers’ troubles.

Trade groups will meet Wednesday with President Barack Obama’s auto task force at the Treasury Department to warn that hundreds of parts companies could collapse without the aid. They are mainly requesting that the government guarantee $8 billion to $10 billion in loans so banks will lend to the suppliers.

The parts companies account for more than three-quarters of auto-sector employment in the U.S., according to a Chicago Federal Reserve study, with employment of about 600,000—roughly five times as many workers as are expected to be employed by GM and Chrysler’s domestic operations once their government-subsidized restructurings are done.

Stabilizing the supply base is critical to ensuring the long-term viability of GM and Chrysler, said Neil De Koker, president and chief executive of the Original Equipment Suppliers Association.

“We could end up having all that money go to waste because they won’t be able to start up without suppliers,” Mr. De Koker said, referring to the taxpayer-funded assistance. “If there’s just one key part missing on a car, you can’t build it.”

His group, along with the Motor and Equipment Manufacturers Association, has prepared a 71-page presentation arguing that as many as 500 parts suppliers could be forced to liquidate this year. They cite several independent studies.

Make no mistake, the aid will be forthcoming. Once the government chose to go all in with the auto companies they committed themselves to preservation of the entire chain. All that remains to be seen is whether any sort of rationalization of the suppliers will take place. With a downsized GM and Chrysler there is arguably too much capacity upstream. 

This is where the Obama commitment to a hands off approach to the industry will run founder. In order to rationally allocate assistance the auto task force will have to parse the vast list of suppliers, try and make some sense of what an efficient network would look like


continue reading


Tags: , , , ,




 
 
 

ValueWalk

Trump/Clinton Economic Plans Revisited, Extremely Different

By Gary D. Halbert. Originally published at ValueWalk.

Trump/Clinton Economic Plans Revisited, Extremely Different 

FORECASTS & TRENDS E-LETTER
by Gary D. Halbert
September 27, 2016

  1. Trump’s Economic & Tax Plan Looks a Lot Like Ronald Reagan’s
  2. Clinton’s Economic & Tax Plan is a Lot Like Obama’s, But Worse
  3. Are You an Accredited Investor? If Yes, Let Us Know ASAP

Overview

For the last several years, the economy has ranked #1 among the greatest concerns expressed by most Americans. And as we all know, the state of the economy has a huge bearing on the investment markets. With that in mind, let’s take a look today at the latest economic and tax propo...



more from ValueWalk

Phil's Favorites

WTO Slashes Global Trade Forecast by 39% Since April: "Wake-Up Call" Says WTO Director

Courtesy of Mish.

Yesterday I commented Draghi Increases Risk of Global Trade Collapse With Brexit Tough Talk.

Today, the World Trade Organization (WTO), slashed its global trade forecast by 39%.

WTI director Roberto Azevedo issued a Trade Wake-Up Call noting trade estimates are below global growth estimates for the first time in 15 years.

The World Trade Organization cut its forecast for global trade growth this year by more than a...



more from Ilene

Zero Hedge

Oil Pops After Crude Inventories Unexpectedly Drop

Courtesy of ZeroHedge. View original post here.

In the week since the last API report, oil has ripped and dipped back to unchanged following an unexpected draw and Algiers disappointment, but prices jumped higher (tagging $45.00) as API noted a 752k draw (4th week in a row). This was dramatially below the 3mm build expected. Cushing, Gasoline, an Distillates all saw inventory draws (the latter's first draw in 7 weeks).

API

  • Crude -752k (+3mm exp)
  • Cushing -832k
  • Gasoline -3.7mm
  • Distillates-343k

The last 3 weeks have seen the biggest drawdown in crude invent...



more from Tyler

Kimble Charting Solutions

Silver facing "bunch" of resistance, sentiment lofty

Courtesy of Chris Kimble.

Below looks at a chart on Silver, dating back to the early 1970’s. Silver created an important top at $50 in 1980, did it create another important top at the same price in 2011?

CLICK ON CHART TO ENLARGE

Silver hit $50 in 2011, which was the highs back in 1980 and since then, has created a series of lower highs and lower lows.

Silver is now testing a bunch of resistance lines and its Fibonacci 61% retracement level at (1), wi...



more from Kimble C.S.

Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

China Stemming Defaults Leaves Junk Bonds Hottest in 5 Years (Bloomberg)

China has stanched a string of defaults and speculation authorities will continue to stave off failures is leaving investors the most bullish on local junk bonds in five years, despite record maturities.

BlackRock Issues Warning on Treasuries as Fed Moves Toward Hike (Bloomberg)

BlackRock Inc., the world’s biggest money manager, said investors should ...



more from Paul

Chart School

RTT browsing latest..

Courtesy of Read the Ticker.

Please review a collection of WWW browsing results.



Date Found: Saturday, 26 March 2016, 02:36:15 PM

Click for popup. Clear your browser cache if image is not showing.
Comment: ZH: Its a BULLARD market, the FED jaw boning is keeping the market up!



Date Found: Sunday, 27 March 2016, 02:31:30 PM

Click for popup. Clear your browser cache if image is not showing.
Comment: RTT: World trade near 2008/09 lows. SP500 near all time highs. PLACE YOUR BETS! Roll up! Roll up!



Date Found: Tuesday, 29 March 2016, 02:42:11 PM

Click for popup. Clear your browser cach...



more from Chart School

OpTrader

Swing trading portfolio - week of September 26th, 2016

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



more from OpTrader

Members' Corner

Market Liquidity and Macroeconomic Bullshit

 

Market Liquidity and Macroeconomic Bullshit

Courtesy of The Nattering Naybob

STJL - "Apparently macroeconomics is all bullshit – ROFL! Paging Naybob now… Famous Economist Paul Romer Says Macroeconomics Is All Bullshit."

The Nattering One muses... Macroeconomics as practiced by academics and those in charge is pure voodoo. Better to chant over goat blood, bird feathers and scattered entrails...

As for reality, overnight CNH HIBOR (...



more from Our Members

Mapping The Market

Here's a Cautionary Tale of Pension Privatization From Chile

Via Jean-Luc:

"When you let the free market take over, the little people get screwed and bankers get rich. Chile tried privatizing retirement plans and surprise, surprise, fund manager ate the profits… Pretty sure the results would be the same here..."  ~ Jean-Luc

Here's a Cautionary Tale of Pension Privatization From Chile

By KEVIN DRUM, Mother Jones

Among free-market fans, Chile's privatized pension plan has long been held up as a model for us to follow. The problem, as the Financial Times notes today, is ...



more from M.T.M.

Digital Currencies

Gold, Silver and Blockchain - Fintech Solutions To Negative Rates, Bail-ins, Currency Debasement and Cashless

Courtesy of ZeroHedge. View original post here.

By Jan Skoyles

I was so pleased yesterday by the announcement that I have joined the Research team at GoldCore as it meant that I could finally start talking about it and was back in a role that lets me indulge in my passion by researching and geeking out on all things gold, silver and money.

...



more from Bitcoin

Biotech

Epizyme - A Waiting Game

Reminder: Pharmboy is available to chat with Members, comments are found below each post.

Epizyme was founded in 2007, and trying to create drugs to treat patient's cancer by focusing on genetically-linked differences between normal and cancer cells. Cancer areas of focus include leukemia, Non-Hodgkin's lymphoma and breast cancer.  One of the Epizme cofounders, H. Robert Horvitz, won the Nobel Prize in Medicine in 2002 for "discoveries concerning genetic regulation of organ development and programmed cell death."

Before discussing the drug targets of Epizyme, understanding epigenetics is crucial to comprehend the company's goals.  

Genetic components are the DNA sequences that are 'inherited.'  Some of these genes are stronger than others in their expression (e.g., eye color).  Yet, some genes turn on or off due to external factors (environmental), and it is und...



more from Biotech

All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

more from David

Promotions

PSW is more than just stock talk!

 

We know you love coming here for our Stocks & Options education, strategy and trade ideas, and for Phil's daily commentary which you can't live without, but there's more!

PhilStockWorld.com features the most important and most interesting news items from around the web, all day, every day!

News: If you missed it, you can probably find it in our Market News section. We sift through piles of news so you don't have to.   

If you are looking for non-mainstream, provocatively-narrated news and opinion pieces which promise to make you think -- we feature Zero Hedge, ...



more from Promotions



FeedTheBull - Top Stock market and Finance Sites



About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

Learn more About Phil >>


As Seen On:




About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

Market Shadows >>