Today's quote: "In the view of the ruling financial elites, the entire post-war system of social services and regulations introduced to stave off the threat of social revolution after the experiences of fascism in the 1930s has made Europe uncompetitive and must now be destroyed. This is the essential content of the demand for “structural reforms.” Nick Beams, WSWS
The auto industry is crucial to the US economy and jobs. Auto sales account for 21% of total retail sales so far this year. They’re up 4.5% year-over-year. New Vehicle sales in 2015 hit an all-time record, even as the rest of brick-and-mortar retail was weak....
But if the flow of money slows, the entire growth machine starts grinding down. Pressures are already building up – and far beyond subprime auto loans....
The New York Fed’s Household Debt and Credit Report, released today, shows that total household indebtedness rose 1.1% over the first quarter, to $12.25 trillion, just 3.3% below the peak of the last credit bubble in Q3 2008 that blew up with spectacular fanfare.
But this time the distribution is different: housing debt is lagging behind (due to the presence of institutional and foreign investors), but non-housing debt has jumped far ahead, led by student loans, which more than doubled since the Financial Crisis to $1.26 trillion, and auto loans which soared 29% to an all-time high of $1.07 trillion
3--French workers show grit: Reader Note on Strikes in France: “Pass the Popcorn”
4--Crooked to the bone: Unsealed Documents Reveal Former White House Officials Violated Fannie/Freddie Conservatorship Rules, Apparently to Advance Bank-Enriching “Reforms”
if the Administration is forced to cough up some of the documents is it keeping from the court, the stench of corruption may be rank enough to keep the banks from creating yet another source of enrichment at public expense.
The documents demonstrate that former Obama Administration officials violated the intent and purpose of HERA [Housing and Economic Recovery Act of 2008]. The goal of HERA was to rectify shortcomings in the oversight of Fannie Mae while choosing a path not provided for in that statute or any other. ....Rather than retaining earnings and building capital in accordance with the goal of rehabilitation (as required in a conservatorship pursuant to HERA, and as was demanded of every other financial institution after the crisis), the Third Amendment ensured that the GSEs could never rebuild capital nor – no matter how much money they returned to the Treasury – be allowed to ever repay the government. These actions clearly violate the most basic requirement of HERA that instruct the Director of FHFAiii “to oversee the prudential operations of each regulated entity and to ensure that …
The newly-released documents also show the actions of these former senior officials were premeditated and defended with false public statements which falsely articulated there was an imminent risk the GSEs would need more financial assistance
5--Leaked Tapes Expose Coup Plot Against Brazil’s Dilma Rousseff
6--More Young Adults Are Living With Their Parents Than At Any Time Since the Great Depression
9--International finance capital and the strikes in France ; resurgence of the class struggle
In the view of the ruling financial elites, the entire post-war system of social services and regulations introduced to stave off the threat of social revolution after the experiences of fascism in the 1930s has made Europe uncompetitive and must now be destroyed. This is the essential content of the demand for “structural reforms.”