Trending Stocks 📈Americans can't pay their car loans - Amit Kukreja
Original timestamp: 01:00:12
Don Curren 🇨🇦🇺🇦“The sector value of #A.I.-linked #companies is 17 times larger than the #marketcapitalization of the #dot-com era at its peak and over four times as large as the #subprime #bubble, according to MarketWatch.” www.nytimes.com/2025/10/26/o...
Opinion | It Is Trump’s Casino...
Opinion | It Is Trump’s Casino...
UrbanGRWe may not have a federal budget, we may not have a state budget (Michigan), but what do we have? The bankruptcy of sub-prime auto-lender First Brands, following on the heels of the bankruptcy of sub-prime auto-lender Tricolor Holdings.
Yep, this is one way to run an economy and a nation. #economics #autodependency #subprime
https://www.reuters.com/business/autos-transportation/us-auto-bankruptcies-show-rising-credit-pain-low-income-households-2025-09-30/
Yep, this is one way to run an economy and a nation. #economics #autodependency #subprime
https://www.reuters.com/business/autos-transportation/us-auto-bankruptcies-show-rising-credit-pain-low-income-households-2025-09-30/
Jeffrey Inscho"AI cannot do your job, but an AI salesman can 100% convince your boss to fire you and replace you with an AI that can’t do your job, and when the bubble bursts, the money-hemorrhaging “foundation models” will be shut off and we’ll lose the AI that can’t do your job, and you will be long gone, retrained or retired or “discouraged” and out of the labor market, and no one will do your job. AI is the asbestos we are shoveling into the walls of our society and our descendants will be digging it out for generations."
Thomas Fricke (he/his)#OpenAI May Be in Major Trouble Financially
"I hypothesize a kind of #subprime #AI crisis is brewing."
https://futurism.com/openai-trouble-subprime
Let's hope for the best, the AI bubble bursting soon. Will this cause a major financial crisis or just hurt some venture capital companies?
C.😆
So, #Trump has announced this via a toot:
"Our great Mortgage Agencies, Fannie Mae and Freddie Mac, provide a vital service to our Nation by helping hardworking Americans reach the American Dream — Home Ownership. I am working on TAKING THESE AMAZING COMPANIES PUBLIC, but I want to be clear, the U.S. Government will keep its implicit GUARANTEES, and I will stay strong in my position on overseeing them as President."
Translation:
1. Fannie and Freddie will become ordinary commercial corporations, with owners, profit & loss statements, stockholders and analysts' ROI expectations, and all the crap that follows from that.
2. They will be expected to generate significant profits for their new, private owners.
3. There will be zero risk to the private owners, because the government will still backstop the mortgages that Fannie & Freddie underwrite.
Analysis: this is creating exactly the same incentive structure that resulted in the subprime mortgage meltdown of 2007-2008: they make money off every mortgage written, regardless of how risky it is, and they don't have to carry the risk themselves, so there's no reason to ensure the credit-worthiness of the applicants.
Prediction: in 5 years, or 10 years, an even bigger mortgage bubble will pop, leaving utter devastation. And the government will bail the bankers and private equity out, with the public's tax dollars.
#USPol #SubPrime #mortgage #meltdown #bubble #risk #incentive #profit
⚯ Michel de Cryptadamus ⚯@thekenyeung @it-s-just-business-thekenyeung so uh, maybe "revenue per employee" is not a good metric for a company currently hemorrhaging $100 million per quarter on a portfolio of entirely uncollateralized subprime loans?
how does one write even a two paragraph piece about #Klarna without mentioning this?
h o ʍ l e t t→ The Subprime AI Crisis
https://www.wheresyoured.at/subprimeai/
“My concern is that I believe we’re in the midst of a subprime AI crisis, where thousands of companies have integrated generative AI at prices that are far from stable, and even further from profitable. ”
The Subprime AI Crisis
None of what I write in this newsletter is about sowing doubt or "hating," but a sober evaluation of where we are today and where we may end up on the current path. I believe that the artificial intelligence boom — which would be better described as a generative AI boom
dehadejetzt höre ich schon wieder - mit Schaum im Ohr - von einer neuen europäischen Großbank. Alles jubelt
Wie war das mit too big to fail?
#subprime #vergessen #finanzwende
Wie war das mit too big to fail?
#subprime #vergessen #finanzwende
JB
Does Project 2025 chart a path to another 2008 mortgage meltdown? Brad German
Project 2025’s call for removing successful borrower protections and the backstop the Federal Reserve, Fannie Mae and Freddie Mac provided during the foreclosure crisis of 2008, not to mention during earlier downturns and crises, looks like a recipe for upending the mortgage market and creating more, not less, anxiety for borrowers and the housing industry, writes guest columnist Brad German, a retired journalist and public relations executive who worked at different companies in the housing industry, including Freddie Mac.