Monday, January 4, 2016

2016 Is Looking Like The Year In Which All Economic Policies Fail ........LOOK OUT BELOW!

2016 Is Looking Like The Year In Which All Economic Policies Fail 

These trends are playing out in an environment when all the other major economies are also rolling over and the US Fed has just begun a tightening cycle. That makes 2016 a uniquely scary year.

US corporate profits are rolling over:


In 2010, fewer than a tenth of car loans were for more than six years. Today the average loan is nearly that long. During the same expansion, outstanding auto credit rose from $600 billion to over a trillion. Car buyers are now challenging college students for the title of most clueless borrower. So expect all those breathless accounts of the bulletproof US auto market to be replaced with laments about empty showrooms in the near future.



We have an economy that's carrying some serious weight on its shoulders and rapidly losing momentum. Here's the Atlanta Fed's latest GDP Now reading, which puts Q4 growth at less than 1.5%:


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