Economics

BOA Wants More Mortgages Given To People Who Can’t Afford Them

How insane is this?  You would’ve thought they would’ve learned from the 2009 meltdown that giving mortgages to people who probably can’t afford them is a bad idea.  Nope.  They want to do more, and undoubtedly when it fails they will definitely be seeking more government bailouts.

“So our goal, going back to regulatory reform, is should you move the down payment requirement from 20% to 10%?”

Source: Mortgage Crisis 2.0: BofA CEO Wants To Slash Down Payments To Help Poor Millennials | Zero Hedge

Economics

Georgia Supreme Court Tosses Taxi Monopoly Suit; Medallion Holders Whine

Short version: Cab owners got pissed because of Uber and Lyft doing what they did but without the government protected monopoly part.  They pushed a case all the way to the Georgia Supreme Court where they were basically told to pound sand.  Full story at the link below.

Source: Taxi Companies Asked Georgia for a Bailout and Got Laughed Out of Court – Hit & Run : Reason.com

Economics, Politics

GOP Failed On Repealing Obamacare Because They Didn’t Define The Endgame

There has never been a shortage of GOP substitutes for Obamacare, from think tank white papers to congressional committee frameworks to fully drafted bills. But in the seven years that congressional Republicans spent promising to repeal and replace President Obama’s health care law, none ever moved beyond the development phase, because what Republicans lacked wasn’t a plan. It was a theory.

Yep.  They couldn’t even come up with a unified message on the thing they sold for 8 years.

Source: Republicans Don’t Lack a Plan to Replace Obamacare. They Lack a Unified Theory – Reason.com

Economics, Uncategorized

GM Inventory At 10 Year High; Proves No One Is Buying

A few years ago I wrote  a deep analytic piece on GM and projected that for the US to recoup its investment, it would take a stock price of $53, which GM, to this day, has not hit.  Even moreso, we’re seeing more sub-prime auto loans, and more people stretching the loans they get to 5, 6, and even 7 years.

Finally, we’re seeing new car inventory sitting in storage.

None of those things are good indications for the US auto manufacturing sector, which makes sense because US cars are generally garbage and the only reason people buy them is that they feel an obligation to “workers.”

Source: GM Auto Inventory Hits 10 Year High: Most Since November 2007, One Month Before The Recession Started | Zero Hedge

Economics

Blue States Don’t Care About Taxes As Much Because They Just Deduct Them

Simply stated, greedy politicians in a state like California can boost tax rates and soothe anxious state taxpayers by telling them that they can use their higher payments to Sacramento as a deduction to reduce their payments to Washington.

What’s ironic about this loophole is that it’s basically a write-off for the rich. Only 30 percent of all taxpayers utilize the deduction for state and local taxes. But they’re not evenly distributed by income.

Source: The Federal Tax Code Should Not Subsidize Greedy Politicians in New York and California | International Liberty