- 22 Reasons To Be Concerned About The U.S. Economy As We Head Into The Holiday Season (Economic Collapse, Oct 14, 2013):
Are we on the verge of another major economic downturn? In recent weeks, most of the focus has been on our politicians in Washington, but there are lots of other reasons to be deeply alarmed about the economy as well. Economic confidence is down, retail sales figures are disappointing, job cuts are up, and American consumers are deeply struggling. Even if our politicians do everything right, there would still be a significant chance that we could be heading into tough economic times in the coming months. Our economy has been in decline for a very long time, and that decline appears to be accelerating. There aren’t enough jobs, the quality of our jobs continues to decline, our economic infrastructure is being systematically gutted, and poverty has been absolutely exploding. Things have gotten so bad that former President Jimmy Carter says that the middle class of today resembles those that were living in poverty when he was in the White House. But this process has been happening so gradually that most Americans don’t even realize what has happened. Our economy is being fundamentally transformed, and the pace of our decline is picking up speed.
The following are 22 reasons to be concerned about the U.S. economy as we head into the holiday season:
- European Car Sales In 2013 Drop To “Record”, 23-Year Low (ZeroHedge, Sep 17, 2013):
European recovery propaganda may be humming (for the latest proof see today’s German ZEW sentiment index which soared from 42.0 to 49.0 matching the all time high in the Dax), but when it comes to the actual economy – that place where commerce is conducted and where supply and demand curves intersect, the situation has never been worse. And not only unemployment which is at a persistently record high for the Eurozone, but actual transactions, in this case in the form of car sales. As AP reports, for the first eight months of the year, passenger car sales in the European Union were off 5.2% to 7.84 million compared with the same period last year, the European Auto Manufacturers’ Association said Tuesday. That’s the lowest January-August figure since the group started keeping track in 1990. So technically, this is a “record” low.
- Tesla Model S Achieves Best Safety Rating of Any Car Ever Tested (Tesla Motors Press Releases, Aug 19, 2013):
Palo Alto, CA — Independent testing by the National Highway Traffic Safety Administration (NHTSA) has awarded the Tesla Model S a 5-star safety rating, not just overall, but in every subcategory without exception. Approximately one percent of all cars tested by the federal government achieve 5 stars across the board. NHTSA does not publish a star rating above 5, however safety levels better than 5 stars are captured in the overall Vehicle Safety Score (VSS) provided to manufacturers, where the Model S achieved a new combined record of 5.4 stars.
Of all vehicles tested, including every major make and model approved for sale in the United States, the Model S set a new record for the lowest likelihood of injury to occupants. While the Model S is a sedan, it also exceeded the safety score of all SUVs and minivans. This score takes into account the probability of injury from front, side, rear and rollover accidents.
- European Car Sales Drop To 20-Year Low, Germany Clobbered (ZeroHedge, June 18, 2013):
When the S&P, always so conveniently ahead of the curve, yesterday revised its forecast for Europe from growth in the second half of 2013 to 2014 one couldn’t help but golf clap, as well as wonder if they finally started looking at the fundamental depressionary reality on the ground instead of the rating agency’s infamous “models.” A depressionary reality confirmed by the latest car sales number for May which just hit a fresh 20 year low.
European car sales hit their lowest level for the month of May in 20 years as the region’s recession dragged on, the European automakers’ association said Tuesday.
They meant depression instead of recession, but it’s an honest mistake. Continue reading »
YouTube Added: 24.05.2013
My recent presentation to the 66th Annual CFA Conference in Singapore in which I discuss the disconnect between financial markets and mathematical reality
Grant Williams is a portfolio and strategy adviser at Vulpes Investment Management in Singapore. He began his career in finance with Robert Fleming & Co. in London, where he traded Japanese equity warrants. Mr. Williams also worked at Jardine Fleming in Tokyo before returning to Flemings in London, where he helped establish the firm’s pan-Asian convertible trading business. He headed up Asian equity trading at UBS in London and then ran equity trading books at Credit Suisse in New York, Hong Kong, and Sydney. Mr. Williams has a strong focus on precious metals and miners and is a regular speaker at investment conferences around the world. He writes the Things That Make You Go Hmmm… column for Mauldin Economics’ weekly newsletter.
More info on the conference here: 66th CFA Institute Annual Conference
- Hank Paulson Burned As Another Electric Car Maker Goes Up In Flames (ZeroHedge, Mai 1, 2013):
It would appear that (apart from Tesla, for now) that any thing related to electric cars is going up in flames. From Fisker’s fubar (and blowing all that hard-earned government funding) and Chevy’s Volt dysphoria to A-123 Systems (the Lithium-Ion battery-maker) and now Coda – which Yahoo Finance notes was among an emerging crop of California startups seeking to build emission-free electric cars three years ago. After selling just 100 of its $37,250 five-passenger vehicles, Coda filed Chapter 11 today taking a few well-known investors with it. On the bright side, the government was not involved (from what we can tell), but on the even brighter side, none other than former US Treasury Secretary Hank Paulson was among those burned by the company going up in flames (as was Harbinger’s Phil Falcone).Despite the $300 million the company managed to raise, that quickly went and unable to raise an additional $150 million in new funding (we suspect blaming ‘market conditions’ for its mere $22million raise), Coda had no choice (and Fortress was more than happy to scoop it up and provide the DIP – the cars will make for fancy paperweights in a collateral liquidation). ‘Green’ is the new ‘red’ as it seems when it comes to electric cars, regardless of funding source – private or public – it goes up in flames.
Green car startup Coda Holdings Inc filed for Chapter 11 bankruptcy protection on Wednesday after selling just 100 of its all-electric sedans, another example of battery-powered vehicles’ failure to break into the mass market.
… exit the auto sector and refocus on energy storage, a far less capital-intensive business. Continue reading »
- Tuesday Humor: GM Announces It Is Losing Money On Every Volt Sold, Will Make Up For It With More Losse (ZeroHedge, April 30, 2013):
In what should not come as a major surprise to anyone, GM just announced that:
- GM SAYS LOSING MONEY ON EVERY VOLT SOLD
There is good news: being implicitly funded by the US taxpayer means never admitting failure. In fact, the faster one fails, the faster one gets bailed out.
- GM SAYS NOT GIVING UP ON VOLT
And when failure is not an option, the only other option is even greater failure. And even bigger losses.
- GM SAYS NEXT GEN VOLT WILL BE $7,000 TO $10,000 CHEAPER
Slowly but surely everyone is figuring out that in the USSA, where making a profit is becoming increasingly impossible, the only credible business model is that of Amazon: lose lots of money but make up for it in volume.
- Lamborghini Unveils $3.9 Million Supercar To Celebrate Its 50th Birthday (Business Insider, March 5, 2013):
The Geneva Motor Show is in full swing after opening to the press this morning, but things really kicked off last night when Lamborghini unveiled the highly anticipated supercar it created to mark its 50th birthday.
Named for a legendary fighting bull, the Veneno checks off all the supercar must-haves: Carbon fiber body construction, a striking body style made with aerodynamics in mind, and an eye-popping price tag.
At $3.9 million, the Veneno is the most expensive Lamborghini ever built and is among history’s priciest production cars.
Its 6.5-liter, 12-cylinder engine will produce a whopping 750 horsepower, enough to send the car from from 0 to 62 mph in 2.8 seconds, and up to a top speed of 220 mph.