Surprise! Surprise! American Car Payment Delinquencies Set Record

Former Fed Chairs, Janet Yellen and Ben Bernanke took great credit for steering the world recovery from the great recession. When something good happens, it’s a result of their masterful strategic planning. Why are they totally surprised when negative news gets reported? The Business Insider headline blared, “A record 7 million Americans have stopped paying their car loans, and even […]

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When The Music Stops, Who Gets Stuck With The Bad Loans?

The Federal Reserve is raising interest rates. Higher rates = higher monthly payments = more defaults. Who will get stuck with bad loans? Wolf Street recently interviewed Mike Jackson, CEO of AutoNation, the largest auto retailer in the country: “We knew ‘free money would inevitably end. Affordability would become an issue…’ The double whammy are rising costs for highly leveraged […]

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Is Filing For Bankruptcy Right For You?

A New York Times (NYT) headline blared, “Too Little Too Late’: Bankruptcy Booms Among Older Americans”. They reference a Consumer Bankruptcy Project (CBP) study, “Graying of U.S. Bankruptcy: Fallout from Life in a Risk Society”: “For a rapidly growing share of older Americans, traditional ideas about life in retirement are being upended by a dismal reality: bankruptcy. …. Driving the […]

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Some Young People Are Catching On!

The Cambridge University computer crashed when famous physicist, Steven Hawking published his doctoral thesis. He says, “Each generation stands on the shoulders of those who have gone before them, just as I did as a young Ph.D. student in Cambridge, inspired by the work of Isaac Newton, James Clerk Maxwell, and Albert Einstein.” “Each generation goes further than the generation […]

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It’s Time For A Global Perspective

In a recent interview with Chuck Butler, he warned us that we may be in for a significant “Minsky Moment”. The federal reserve is raising interest rates and unloading trillions in their US debt holdings. Countries that normally buy our bonds are slowing down their purchases or reducing their holdings. With fewer buyers, what happens if interest rates continue to […]

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Understanding Debt

Remember when pundits suggested the way to get rich quick was to use “Other People’s Money” (OPM)? They pointed to real estate empires and stock market success resulting from investors leveraging debt to accumulate wealth. It’s not as easy as it sounds. I moved to Atlanta during the cable TV boom. Several friends worked for Scientific Atlanta, an innovator in […]

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