World economy talk

[Monseratto]

Cheap to go on tour to UK...

http://www.bbc.com/news/business-37582150

[unmarked]

India just announced 500 and 1000 bills/notes are no longer valid midnight their time. Surprise surprise!!

Great move to curb tax evasion. Now cash hoarders will have to exchange their notes thru banks and pay their dues til end of year.

Amazing yung secrecy ng announcement, not even the rich and powerful knew it was gonna happen last night.

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[jack_husain]

India just announced 500 and 1000 bills/notes are no longer valid midnight their time. Surprise surprise!!

Great move to curb tax evasion. Now cash hoarders will have to exchange their notes thru banks and pay their dues til end of year.

Amazing yung secrecy ng announcement, not even the rich and powerful knew it was gonna happen last night.

Sent from my SM-N9005 using Tapatalk

On the homefront, I've almost forgotten mine, but they're just a pittance -

[Monseratto]

Dollar jumps to highest in almost 14 years on Fed hike stance
| Reuters

[Wh1stl3r2]

Damn. Everything's going to be so expensive next year.

[dreamur]

Damn. Everything's going to be so expensive next year.

Already lost $1k!



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➰Shine the light➰
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[Monseratto]

Dow futures slide more than 1 points as doubts over Trump’s agenda build - MarketWatch

[Monseratto]

Mizuho on subprime auto lending conditions - Business Insider

[uls]

US stocks rallied after Trump won in November

the bet was -- Trump's tax cuts and infrastructure spending stimulate the US economy and inflation

it's called the Trumpflation trade

Trump was unable to make congress pass the healthcare bill

so now tax reform and infrastructure spending is in question

the Trumpflation trade in reversing

[Ry_Tower]

Actually that is true. Pero mukhang mas mahigpit pa din auto loans sa Pinas kesa sa US. Dami ko kasi kakilala na nag-apply pero hindi lahat na-approve. Nagchecheck talaga sila income. At least dito sa amin ha, mukhang sa MM and select big cities ata gumana yung scam na isang tao dami naloan na kotse.

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[uls]

coz there's demand for high yield bonds

Sa states, auto loan originators sell the loans to banks which package the loans into bonds and sell the bonds to investors

due to investor demand for such type of bonds, banks need to buy as many loans as they can to package into bonds

--

in the Phils., there's no such thing as auto loan securitization (correct me if i'm wrong)

whoever makes the loans, the loans sit on their books

unlike sa States, loans are hot potato

risk is transferred from one party to another

so loan originators have no incentive to screen borrowers thoroughly (they have incentive to make as many loans as they can)

and banks... they're only interested in selling the auto-loan backed bonds to investors

[uls]

it becomes a problem when the music stops

when auto-loan backed bond prices start falling coz the loans contained in those bonds start going bad

banks could get stuck with bonds nobody wants

that's what happened last decade

it was housing loans that went bad

many subprime home buyers started defaulting

so prices of many RMBS (residential mortgage backed securities) fell

demand for RMBS dried up

banks got stuck with bonds nobody wants (called toxic assets)

eventually banks had to be bailed out

[Wh1stl3r]

it becomes a problem when the music stops

when auto-loan backed bond prices start falling coz the loans contained in those bonds start going bad

banks could get stuck with bonds nobody wants

that's what happened last decade

it was housing loans that went bad

many subprime home buyers started defaulting

so prices of many RMBS (residential mortgage backed securities) fell

demand for RMBS dried up

banks got stuck with bonds nobody wants (called toxic assets)

eventually banks had to be bailed out

I bet the bank execs were the ones who still came out on top after the bail outs.

You'd think the politicians would've put in safeguards to prevent that sort of thing from happening again.

[niky]

We're relatively safe from auto loan subprime here.

We aren't even scraping the bottom of the barrel in offering below inflation interest or seven to eleven year terms, like the Americans are.

-

I've been worried about those loans, but scouring the repo lots and lists of banks turns up a relatively low number of repo cars, given the high sales over the past few years.

[Wh1stl3r]

Actually that is true. Pero mukhang mas mahigpit pa din auto loans sa Pinas kesa sa US. Dami ko kasi kakilala na nag-apply pero hindi lahat na-approve. Nagchecheck talaga sila income. At least dito sa amin ha, mukhang sa MM and select big cities ata gumana yung scam na isang tao dami naloan na kotse.

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That's good to hear. Before that auto loan scam I also heard from a couple of bank managers that they had to say no to a couple of my former clients. I don't know how they discovered those two had collection cases. Both the bank and the casa rejected them. When I talked to the sales agent, she also knew about the cases.

BDO couldn't find ways hehe.

[EQAddict]

I actually read this. Im just too dumb to post any meaningful contribution.

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[falken]

Just keep em coming boss.

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[uls]

like


hehe

[Walter]

A lot of people actually read this thread ...

[uls]