Over the past seven to eight years, interest rates have been a major factor in allowing consumers, investors, and the government to expand credit to historic levels. In fact, the government had not been above 100% of debt to GDP since the credit expansion that was needed to fight during World War II.
But the problem with debt is that a day of reckoning always comes due at some point. And just like it did back in 2007 when rising mortgage rates burst the Fed induced housing bubble, signs are once again pointing towards another credit and housing collapse since all the Fed did with ZIRP, QE, and TARP was to delay paying the piper until the problems now became exponentially greater than they were eight years ago.
The latest just released Quarterly Report on Household Debt and Credit from the New York Fed showed a small increase in overall debt in the third quarter of 2016, prompted by gains in non-housing debt, and new all time highs in student loans which hit $1.279 trillion, rising $20 billion in the quarter.11.0% of aggregate student loan debt was 90+ days delinquent or in default at the end of 2016 Q3.
Total household debt rose $63 billion in the quarter to $12.35 trillion, driven by a $32 billion increase in auto loans, which also hit a record high of $1.14 trillion. 3.6% of auto loans were 90 or more days delinquent.
Mortgage balances continued to grow at a sluggish pace since the recession while auto loan balances are growing steadily, and hit a new all time high of $1.14 trillion.
What was most troubling, however, is that delinquencies for auto loans increased in the third quarter, and new subprime auto loan delinquencies have not hit the highest level in 6 years. – Zerohedge
On the other side of the consumer debt problem is of course the housing bubble, and the fact that interest rates are now close to, or above 4% for the first time in nearly a decade. And almost immediately when these rates began to rise, housing sales began to decline which according to the Mortgage Bankers Association are a growing trend since refinances are now falling, and are expected to fall by another 47% over the next 12 months.
The fast rise in rates has spurred homeowners to pull back from refinancing their mortgages. Applications dropped 3% in the week ended Nov. 18 from the prior one, the seventh consecutive weekly decline, and the second since Election Day, according to data released Wednesday by the Mortgage Bankers Association.
The MBA estimates refinances will fall 46% next year, to $484 billion, which will hurt Americans’ ability to free up cash by reducing the cost of their monthly mortgages. The fall in refinances also will hit an important area of consumer-loan growth for banks. To slow the possible damage, banks already are pitching riskier loans that come with adjustable interest rates or allow borrowers to pull more equity out of their homes.
“The increase in rate has shocked consumers…I didn’t expect it either,” said Dave Norris, chief revenue officer at LoanDepot, the 10th largest mortgage lender in the U.S. by loan volume.
Rising interest rates, a peak in home prices, and consumers maxed out on credit were all signs in late 2006 that led just a few months later to the collapse of the housing bubble. And with the Fed having quadrupled their balance sheet, as well as keeping the discount rate just above zero since the last crisis, it appears now that the markets have completely dislocated themselves from central bank control, and there is very little ammunition available for the Fed to counter what is showing up right on their doorstep.
HERE Is WHAT WILL HAPPEN If The DEEP STATE TAKES DOWN PRESIDENT TRUMP & It’s NOT PRETTY … FOR THEM
“The tree of liberty must be refreshed with the blood of patriots and tyrants.” – Thomas Jefferson
ELDER PATRIOT – Corrupt politicians ignore Jefferson’s directive to their own detriment. It’s no longer political, it’s personal.
Americans have had their eyes opened by the ascension of Donald Trump and no amount of leftwing money can put the Freedom Movement genie back in the bottle.
Conservative Senator Ted Cruz made that observation after reviewing the results of the 2016 elections and the expectations of the voters.
Cruz, who had the most high profile personality clash with Donald Trump during the Republican primary process nevertheless embraced Trump’s America First agenda and said, “If we’re given the White House and both houses of Congress and we don’t deliver, I think there will be pitchforks and torches in the streets. And I think quite rightly.”
Candidate Trump promised many things – border control, lower taxes, fairer trade relations, a balanced budget, healthcare that puts the people first not the government, safer communities, and – to the extent possible – an end to foreign wars. What, among those promises, should any Republican, nay any American, have a problem with?
After four months without a single legislative achievement, Congressional and Senatorial Republicans – notably John McCain, Paul Ryan and Lindsey Graham – have joined the Democrats in investigating President Trump absent a single shred of evidence that an underlying crime has been committed.
So, what gives?
Well, there was one additional promise that Trump made on his way to the White House that has some Republicans joining with Democrats and quaking in their boots, Trump’s promise to “Drain the Swamp.”
As we reported yesterday, “An F.B.I. agent with ‘intimate knowledge of the inner workings of the Clinton case’ told us that they uncovered evidence of such massive corruption that the agents involved realized that damned near the entire government could be brought down.”
The criminal co-conspirators in both parties realized almost immediately that the new sheriff wasn’t interested in joining them in the swamp so they launched, what can only be characterized as, a coup attempt.
Democrats are well schooled in such things probably because of their close alliance with Marxist regimes that can only gain power by seizing it through bloody civil wars. It should be noted that the Democratic Party has already done this once before.
One Hundred and Fifty-Seven years ago the Democrats waged a war against the First Republican President Abraham Lincoln for giving Blacks their freedom. That war came at a high price, as many as 700,000 Americans died fighting for what they believe in. To put that in perspective, these casualties exceed the nation’s loss in all its other wars, from the Revolution through Vietnam.
Today, Americans are still prepared to fight and die to protect their children’s God-given freedoms. Despite what you are reading and hearing in the mainstream media, they aren’t the leftwing-funded rioters, the pussy hat-wearing feminists, or the cuck bois that cant handle a micro aggression. No, the Americans that back Donald Trump are well armed.
Donald Trump’s presidency will move forward politically lest the sixty million patriots who voted for him, that are comprised of the large majority of military voters, police, and NRA members, move it forward by force.
These patriots are armed, trained, prepared, and have proven their discipline. They have grown disgusted by the corruption in Washington and will do whatever is necessary to make sure Trump’s Freedom Agenda moves forward and under the direction of Donald Trump himself.
No amount of fake news based on unsubstantiated charges by unnamed sources is going to change that. The battle lines have been drawn and no amount of finger pointing is going to convince these patriots to let anyone overturn the election results.
So why are establishment politicians courting a bloodbath on the streets of America that will also threaten them personally when they could be part of Making America Great Again? It’s because they have been caught red-handed and up to their eyeballs in a worldwide criminal conspiracy that has nothing to do with politics and everything to do with defrauding the American taxpayers.
And, now that they’ve been caught robbing the world’s largest bank – the U.S. treasury – they have chosen to go out in a blaze of glory rather than try to defend the indefensible at trial.
Washington’s criminal elites have chosen to go to war to unseat our duly elected president. It’s time to make our voices heard before this turns very ugly. Buckle your chin strap, America is counting on you.
EDITORS NOTE: THIS IS NOT A CALL TO ARMS BUT RATHER AN ANALYSIS OF WHAT WOULD HAPPEN IF THE DEEP STATES OVERTURNS A DUELY ELECTED PRESIDENT.
HERE IS A LIST OF EVERY SINGLE TIME OBAMA COMMITTED AN IMPEACHABLE OFFENSE THAT DEMS & MEDIA COVERED UP
“Impeach!” It’s been more than eight years since Democrats uttered that word – long enough for anyone to wonder if it was still in their vocabulary, considering the deafening silence through the dozens of serious scandals during President Obama’s administration – but now that President Trump is the man in the White House, it’s back with a vengeance.
Democrats everywhere are wildly slinging the “I” word, hoping to nail Trump for high crimes and misdemeanors after the New York Times claimed a memo written by former FBI Director James Comey said the president urged him to end the federal investigation into former national security adviser Michael Flynn.
Some members of Congress are getting in on the action. They include Reps. Maxine Water, D-Calif., and Al Green, D-Texas. Even a Republican, Rep. Justin Amash, claimed Wednesday there are grounds to impeach President Trump. House Oversign Committee Chair Rep. Jason Chaffetz, R-Utah, asked for the alleged Comey memo and other documents. Chaffetz tweeted that he is prepared to subpoena the information. And Sen. John McCain, R-Ariz., invoked “Watergate.”
Now the Democratic Party is reportedly poll testing impeachment as a 2018 election issue. More than 1 million people signed a petition calling on Congress to impeach Trump.
Wasting no time Wednesday, the mainstream media sprang into action, enthusiastically echoing the left’s impeachment calls. MSNBC launched a Watergate ad implying Trump is America’s new Richard Nixon.
“Watergate. We know its name because there were reporters who never stopped asking questions,” says MSNBC host Chris Hayes, who hinted that Trump is next on the impeachment chopping block. “Now, who knows where the questions will take us. But I know this: I’m not going to stop asking them.”
Meanwhile, some overzealous members of the left plastered fliers around Washington, D.C., demanding all White House staffers resign Wednesday.
The posters read: “If you work for this White House you are complicit in hate-mongering, lies, corrupt taking of Americans’ tax money via self-dealing and emoluments, and quite possibly federal crimes and treason. Also, any wars will be on your soul. … Resign now.”
But constitutional scholar Jonathan Turley, who voted for President Obama, warned “impeachment” enthusiasts not to get ahead of themselves with President Trump. Why?
At this time, there’s no evidence Trump actually committed a crime.
“The criminal code demands more than what Comey reportedly describes in his memo,” Turley wrote in a May 17 opinion piece posted at the Hill. Turley explained:
For the first time, the Comey memo pushes the litany of controversies surrounding Trump into the scope of the United States criminal code.
However, if this is food for obstruction of justice, it is still an awfully thin soup. Some commentators seem to be alleging criminal conduct in office or calling for impeachment before Trump completed the words of his inaugural oath of office. Not surprising, within minutes of the New York Times report, the response was a chorus of breathless “gotcha” announcements. But this memo is neither the Pentagon Papers nor the Watergate tapes. Indeed, it raises as many questions for Comey as it does Trump in terms of the alleged underlying conduct.
A good place to start would be with the federal law, specifically 18 U.S.C. 1503. The criminal code demands more than what Comey reportedly describes in his memo. There are dozens of different variations of obstruction charges ranging from threatening witnesses to influencing jurors. None would fit this case. That leaves the omnibus provision on attempts to interfere with the “due administration of justice.”
However, that still leaves the need to show that the effort was to influence “corruptly” when Trump could say that he did little but express concern for a longtime associate. The term “corruptly” is actually defined differently under the various obstruction provisions, but it often involves a showing that someone acted “with the intent to secure an unlawful benefit for oneself or another.” Encouraging leniency or advocating for an associate is improper but not necessarily seeking an unlawful benefit for him.
. Obama’s Iran nuke deal
Obama knew about Hillary’s private email server
Obama IRS targets conservatives
Obama’s DOJ spies on AP reporters
Obamacare & Obama’s false promises
Illegal-alien amnesty by executive order
Operation Fast & Furious
5 Taliban leaders for Bergdahl
‘Recess ‘ appointments – when Senate was in session
Appointment of ‘czars’ without Senate approval
Suing Arizona for enforcing federal law
Refusal to defend Defense of Marriage Act
Illegally conducting war against Libya
NSA: Spying on Americans
Muslim Brotherhood ties
Solyndra and the lost $535 million
Cap & Trade: When in doubt, bypass Congress
Refusal to prosecute New Black Panthers
Obama’s U.S. citizen ‘hit list’