Juggling Dynamite

Next to housing, transport has been the largest consumer spending item for decades. That is now changing. Understanding and anticipating the transport evolution now underway is a critical piece of navigating the economy and investing landscape today. See more here, The coming transport revolution:

“Clinging to old ideological biases could produce massive investments in obsolescence. In an age of rapid change, vision and adaptation will be more useful than ideology and bias.”

Always has been, always will be.  The fact that most people can only see the past and present and expect the same Ad infinitum, is a catalyst for grave financial errors.

The Canadian Real Estate Association reported yesterday that Canadian home sales slipped for a fourth consecutive month. Toronto and Vancouver both saw sales weaken by 41% and 8% year-over-year respectively.

Month-over-month the nationwide decline was 2.1% while Toronto fell 5.4%, Vancouver was down 1.7% and Calgary was down 5.5%.  This is barely a start in the mean reversion due here.

The nationwide benchmark home price declined 1.5 percent to C$607,100 ($476,000) from June, the Canadian Real Estate Association said Tuesday, the largest drop since the previous recession. In Toronto, the country’s largest city, the price fell 4.7 percent on the month.  Here is a direct video link.

Broke buyers, desperate to move product-well-past reasonable-demand-manufacturers and dealers,  along with price indiscriminate-desperate-to-dump-capital anywhere ‘investors’ have made a big mess once again. See ‘Deep’ Subprime Car Loans hit Crisis-Era Milestone:

Amid all the reflection on the 10-year anniversary of the start of the subprime loan crisis, here’s a throwback that investors could probably do without.

There’s a section of the auto-loan market — known in industry parlance as deep subprime — where delinquency rates have ticked up to levels last seen in 2007, according to data compiled by credit reporting bureau Equifax.  “Performance of recent deep subprime vintages is awful,” Equifax said in a slide show on second-quarter credit trends.

Also watch this discussion.  Here is a direct video link.

30 year old Portfolio Manager:  “I think auto investors know what they are doing here.” LOL!

Here is the big picture chart on the US consumer credit cycle since 2007.