Porter stansberry posts

Interact It's the new subprime lending bubble… I subscribe to an investment newsletter called Stansberry Research. As with all newsletters I don't jump when the writer says one must, you'd never stop jumping. However, today's letter confirmed what I suspec Read more ... t may be another worrisome trend to be aware of. In 2008 the market collapsed under the weight of subprime mortgages and Wall Street's involvement. Today, Wall Street has another impending disaster on its hands, subprime auto loans! While this is USA info, I am confident that the content applies in Canada as well. Read at your own pleasure, and please don't worry if you are invested with us; our investment managers with whom we work don't travel down these risky roads. Our dollar-cost averaging approach to investing also helps to lessen any exposure to negative markets. ___________________________________________ It's the new subprime lending bubble… In the March issue of Stansberry's Investment Advisory, Porter and his research team discussed the growth of subprime auto lending… "The last few years have seen a surge in Wall Street's involvement in car loans. Blackstone, the premier private-equity firm, bought car lender Exeter Finance in 2011, starting a 'land rush' in the sector. Soon, others followed, like asset-management firm Perella Weinberg, which partnered with CarFinance Capital." Historically, it was the regionally operated small, private finance companies that dominated the car-finance sector… What you can charge for a car loan varies from state to state. But when Wall Street – thirsty for yield – learned you can charge 19% for subprime auto loans, it came running. From the March issue… Take what it costs a finance company to acquire capital. Take for example, Santander Consumer USA (SC), one of the largest providers of car loans. It has been paying about 2% for capital, thanks to the government's war on interest rates. Subtract that 2% cost of capital from the 19% Santander could earn providing a loan to a subprime car buyer. Yes, Santander will have to cover some overhead costs. Bankers and loan brokers aren't cheap. And figure a few points for the inevitable credit losses. But then remember: These loans could be sold to other investors – or even better, to the public. Now throw in a bunch of leverage. Presto. You've got a recipe for an auto boom. And shortly thereafter, you've got another subprime lending bust. Lending volume grew, standards fell, and terms expanded… Today, subprime car loans make up one in every four loans. And $18 billion in auto loans were securitized and sold to investors, allowing the finance firms to shift the credit risk to investors… The next part sounds even more familiar to me. Standard & Poor's released a report on February 26, 2014 warning that subprime auto loans were beginning to go bad at an alarming rate, before any material decrease to employment or other economic activity. "In our opinion, we're at a turning point with respect to subprime auto loan performance," the credit-ratings agency wrote, "similar to where we were in 2006." A collapse in auto finance will devastate our economy. And several consumer finance companies are at risk. The New York Times echoed our sentiment yesterday… In a story titled "In a Subprime Bubble for Used Cars, Borrowers Pay Sky-High Rates," the paper exposed the rampant fraud in auto lending today: Forging lending documents, lying about borrower income, inflating loans, etc. In other words, exactly what we saw leading up to the collapse in subprime home loans. From the Times… The New York Times examined more than 100 bankruptcy court cases, dozens of civil lawsuits against lenders and hundreds of loan documents and found that subprime auto loans can come with interest rates that can exceed 23 percent. The loans were typically at least twice the size of the value of the used cars purchased, including dozens of battered vehicles with mechanical defects hidden from borrowers. Such loans can thrust already vulnerable borrowers further into debt, even propelling some into bankruptcy, according to the court records, as well as interviews with borrowers and lawyers in 19 states. Firms are lending to the bankrupt, the unemployed, and people living on Social Security. In many cases, the loan balances were so high because the borrower still owed money on the car he was trading in, which was rolled into the new loans. Other loans had life insurance policies rolled into them, which would pay the loan in the case of the borrower's death. But despite the warnings we mentioned above from ratings agency Standard & Poor's, the company still slapped a "AAA" rating on this garbage. The Times article notes a bond issue from Prestige Financial Services of Utah. The $390 million bond sale was four times oversubscribed. And many of the bonds are backed by auto loans made to people who have been in bankruptcy. The average interest rate on the loans in Prestige's latest offering was 18.6%. And the loans are already showing some signs of stress… According to the Times – which cited credit-data firm Experian – banks are writing off an average $8,541 of each delinquent loan, up about 15% from a year ago. And repossessions are up 78% to around 388,000 cars in the first three months of the year versus a year ago. The number of borrowers who are over 60 days late on their car payments jumped in 22 states over the same period, according to the Times. Private-equity firm and Small Stock Specialist holding Kohlberg Kravis Roberts (KKR) – along with two other private-equity shops – had invested a total of $1 billion in auto lender Santander Consumer USA. But KKR wisely sold most of its stake when Santander went public in January. As you can see in the following chart, Santander shares have collapsed…
2 days ago
Roman
Porter Stansberry- Porter Stansberry: This could be the last warning Americans will get
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"When that day comes, people will look back and realize..."
2 days ago
Roman
Porter Stansberry: An urgent warning for middle-class Americans
thecrux.com
From Porter Stansberry in The S&A Digest: Today's Digest is something totally different... I believe it's time to prepare for a crisis – to really prepare. And I think you'll find my advice on how to...
2 days ago
Daniel Not a subscriber? Click here to learn more. Advanced Search . Home About Us Resources Archive Free Reports Market Window Steve's note: My friend Porter Stansberry is the smartest guy I know. Earlier this week, he told a crowd of hundred Read more ... s at the Stansberry Alliance Conference, "Nearly every article of the Communist Manifesto has been adopted by the government of the United States." I hate to think he might be right. Unfortunately, he usually is. While you may disagree with him, you should still consider what he has to say... Don't Fool Yourself: America Is "Now a Communist Nation" ByPorter Stansberry Wednesday, November 11, 2009 At last year's Alliance Conference, I urged folks to buy stocks – vehemently... It was the most bullish I've been in my entire life. But now I feel the opposite way. When the facts change, I change my mind. I never thought we'd see the government running $2 trillion deficits, taking over health care, owning all the banks... The stock market seems to believe the government can solve all of our problems with paper money and bureaucratic mandates. My bet is, it doesn't work... at least, not for long. And given the choice between earning less than 1% in the bank and buying gold at $1,100 per ounce, I'm buying gold. Watching the government rack up debts that will be impossible to repay while narrowing the tax base (at least 50% of Americans pay zero federal income tax) at the same time is very scary. Not only has the government gone mad with spending and corruption, but it also expects about 10% of the population to pay for essentially all the costs. The math simply doesn't add up: 10% of the population can't (and won't) pay for all of the costs of a socialist federal government. This has nothing to do with traditional party politics. Both parties have grown the size and responsibilities of government. Both parties have added to the national debt. And both parties support the narrowing of the tax base – because that's what makes good political sense in an unlimited democracy... Promise the voters they can live at the expense of their neighbors and future generations. Unfortunately, we know from history this kind of political system can't last for long – for lots of reasons. One important reason: The rich will leave. Or they will stop working. They will hide their incomes or only invest in tax-protected vehicles. And we know the political response will be tougher laws on emigration, taxation, more money printing, and – eventually – capital controls that make it impossible to protect yourself from a massive currency devaluation. That's the script. We've watched the same things happen dozens of times around the world following World War II and the introduction of a global paper currency standard, which allowed governments to run huge deficits and finance their activities through inflation and devaluation. We just never thought we'd see it happen here. Today, the idea of leaving America in search of freedom and financial security seems like absolute madness. But it won't for long. And by the time most people wake up to the very real threats to their standard of living, it will be too late. The trends I'm talking about are cultural and fiscal, not ideological. Read the original Communist Manifesto. It's nearly identical to today's government policies. Any politician who tries to oppose the landslide of modern entitlements is immediately labeled a kook and is unelectable. Whether you think we ought to have free health care and drugs for retirees, more military spending than the rest of the world combined, a bankrupt retirement scheme based on government debt, government guarantees for the banks, etc. doesn't matter to me. I'm not interested in pie-in-the-sky ideas about how the world should work. I write about how the world does work. And I can tell you this with 100% accuracy: You cannot support the world's reserve currency when you are the world's largest debtor, when you plan to finance annual deficits exceeding $2 trillion with progressive income taxes and money printing. Our economy is a charade. And when it falls apart, the consequences will be devastating. Regards, Porter Stansberry More from Steve: I did my homework after I heard Porter speak, and I was surprised. Porter was right... Heavily progressive taxation, state-owned schools, government controlling the banks, printing the money, and owning manufacturing – these are not free-market ideals. They're the opposite. These are calls right out of the Communist playbook. It's not nutty to take steps to protect yourself from the possibilities Porter brings up... It's prudent. If you'd like to learn more about what Porter sees ahead and how to profit from it, click here. Editor's note: If you'd like more insight and actionable advice from Porter Stansberry, consider a free subscription to DailyWealth. Sign up for DailyWealth here and receive a report on how to prosper despite the Fed's inflationary policies. This report will show you how to protect your hard-earned money from what Porter has dubbed the "End of America." Click here to learn more. Further Reading: This Is Where I'll Go to Escape America The Federal Reserve Is Openly Telling You to Buy Gold and Silver
3 days ago
Dominick 07.01.2014 BY KELLY BROWN Free market economists are not going to be happy about this... A major financial news source just published shocking details about a research report by two employees at the Federal Reserve Bank. The 36-page report appla Read more ... uds the use of “capital controls” in global markets. If you’re unfamiliar with the term “capital controls,” it’s probably because we tend to avoid them in the United States in favor of a free market economy. Capital controls are simply laws that regulate and restrict what you are allowed to do with your money by regulating the flow of cash in and out of a national economy. The laws define such things as where you can invest your cash and how you can allocate your assets. If you take a look around the globe, you’ll see several recent examples—almost always from countries experiencing a currency crisis: In Cyprus...some citizens cannot withdraw or write checks for more than €300 per day from their own accounts. These controls were put in place after the Greek debt crisis of 2012 and some are set to continue until year-end. In Iceland...capital controls imposed in 2008 have blockaded offshore investors from selling $7.2 billion in assets. In Argentina...citizens must pay an extra tax on vacations abroad. In the Ukraine...recent tensions sparked a series of capital controls. Ukrainians must wait six working days before making any type of foreign currency purchases. In addition, they cannot exchange more than the equivalent of $5,800 USD within a given time period. You might be wondering… how are these draconian laws “a useful tool for managing financial stability” as the recent Fed paper says? Well, the Fed research claims that capital controls would protect the U.S. dollar from the effects of rapid cash movements... Of course, the only countries that are worried about capital controls are those deeply worried about a currency crisis. According to Steve Hanke, a professor of applied economics at Johns Hopkins University in Baltimore, “Capital controls signal that a country is very worried about preserving its foreign exchange....That means bad things are in the wind.” SEE ALSO: Is your state as broke as these places? For more than 50 years, Americans have never really thought twice about the value of our currency. But times are rapidly changing. And most Americans don’t realize that the greatest weapon in our nation’s arsenal is not our military might or our education system, but the simple fact that the U.S. dollar is the world’s “reserve currency.” As such, our money forms the basis of the global financial system. And banks around the world hold our dollars in reserve against their loans. That’s why, for the past few decades, we have been able to print and borrow trillions of dollars, with no real negative impact. We are the only country in the world that does not have to pay for imports in a foreign currency. We can rack up enormous debts and then print more money. But this exorbitant privilege could soon expire, because many of the most powerful countries around the world (including China and Russia) are looking for a new world reserve currency. And when the U.S. dollar is no longer the world’s reserve currency… when we can no longer print money and borrow absurd sums without consequence– we are in trouble. One financial guru, Porter Stansberry, believes this currency collapse in America is actually going to happen much sooner than most people think. He says that’s how currency collapses happen… gradually… slowly… then all of a sudden. And Mr. Stansberry has an uncanny track record of predicting some of the biggest moves in the economy over the past decade. In 2007 he announced GM would go bankrupt and then he predicted Fannie Mae and Freddie Mac would also soon go bankrupt. Both of his predictions came to fruition. WATCH: Learn more from Porter Stansberry, here. Now Stansberry says the next big collapse could be America’s currency. And even though most Americans think this could never happen... not here... Stansberry believes new laws that just went into effect on July 1st of this year could dramatically accelerate this process. Now a currency crisis will be bad for all Americans. But it will be especially devastating to seniors, most of whom are no longer working, rely on the government for income and healthcare, and have not diversified any money out of the U.S. dollar. What is this law that was secretly passed by the Obama Administration… and how will it affect you, your money, and the U.S. dollar? Stansberry and his Baltimore-based research team have put together a free slide presentation that explains everything you need to know. They are also offering to send you a free report explaining the #1 way to legally protect some of your money from the government. Get the facts and protect yourself here. SEE ALSO: The catastrophic events that just went live on July 1, 2014 Follow Our Blog Get direct access to everything published by DailyWealth. We respect your privacy. RECENT POSTS Obama’s Secret New Tax Claim [FREE REPORT] on Devastating new currency law that went into effect July 1st, 2014. Learn More 3 Critical Survival Items What really killed 20 million in the 1918 flu epidemic? Protect yourself and get the answer here... Click Here The End of Obama White House Scandal? Shocking video reveals a white house scandal that could shut down the banks... Click Here Crazy Side Income Michelle Obama’s Crazy Side Income: She shares in more money per month than most people do in 1 yr... Full Story Here The End Of American Stocks Soar – but some wealthy citizens are preparing for “The End of America”. Here's Why New Obama Law -- 1st Look
3 days ago
Jim Fed Employees Rollout A Bold Idea To Trap The Entire Country’s Wealth The catastrophic events that just went live on July 1, 2014 ( http://pro1.stansberryresearch.com/212521/ ) Free market economists are not going to be happy about this… A ma Read more ... jor financial news source just published shocking details about a research report by two employees at the Federal Reserve Bank. The 36-page report applauds the use of “capital controls” in global markets. If you’re unfamiliar with the term “capital controls,” it’s probably because we tend to avoid them in the United States in favor of a free market economy. Capital controls are simply laws that regulate and restrict what you are allowed to do with your money by regulating the flow of cash in and out of a national economy. The laws define such things as where you can invest your cash and how you can allocate your assets. If you take a look around the globe, you’ll see several recent examples—almost always from countries experiencing a currency crisis: In Cyprus...some citizens cannot withdraw or write checks for more than €300 per day from their own accounts. These controls were put in place after the Greek debt crisis of 2012 and some are set to continue until year-end. In Iceland...capital controls imposed in 2008 have blockaded offshore investors from selling $7.2 billion in assets. In Argentina…citizens must pay an extra tax on vacations abroad. In the Ukraine...recent tensions sparked a series of capital controls. Ukrainians must wait six working days before making any type of foreign currency purchases. In addition, they cannot exchange more than the equivalent of $5,800 USD within a given time period. You might be wondering… how are these draconian laws “a useful tool for managing financial stability” as the recent Fed paper says? Well, the Fed research claims that capital controls would protect the U.S. dollar from the effects of rapid cash movements… Of course, the only countries that are worried about capital controls are those deeply worried about a currency crisis. According to Steve Hanke, a professor of applied economics at Johns Hopkins University in Baltimore, “Capital controls signal that a country is very worried about preserving its foreign exchange….That means bad things are in the wind.” For more than 50 years, Americans have never really thought twice about the value of our currency. But times are rapidly changing. And most Americans don’t realize that the greatest weapon in our nation’s arsenal is not our military might or our education system, but the simple fact that the U.S. dollar is the world’s “reserve currency.” As such, our money forms the basis of the global financial system. And banks around the world hold our dollars in reserve against their loans. That’s why, for the past few decades, we have been able to print and borrow trillions of dollars, with no real negative impact. We are the only country in the world that does not have to pay for imports in a foreign currency. We can rack up enormous debts and then print more money. But this exorbitant privilege could soon expire, because many of the most powerful countries around the world (including China and Russia) are looking for a new world reserve currency. And when the U.S. dollar is no longer the world’s reserve currency… when we can no longer print money and borrow absurd sums without consequence– we are in trouble. One financial guru, Porter Stansberry, believes this currency collapse in America is actually going to happen much sooner than most people think. He says that’s how currency collapses happen… gradually… slowly… then all of a sudden. And Mr. Stansberry has an uncanny track record of predicting some of the biggest moves in the economy over the past decade. In 2007 he announced GM would go bankrupt and then he predicted Fannie Mae and Freddie Mac would also soon go bankrupt. Both of his predictions came to fruition. Now Stansberry says the next big collapse could be America’s currency. And even though most Americans think this could never happen… not here… Stansberry believes new laws that just went into effect on July 1st of this year could dramatically accelerate this process. Now a currency crisis will be bad for all Americans. But it will be especially devastating to seniors, most of whom are no longer working, rely on the government for income and healthcare, and have not diversified any money out of the U.S. dollar. What is this law that was secretly passed by the Obama Administration… and how will it affect you, your money, and the U.S. dollar? Stansberry and his Baltimore-based research team have put together a free slide presentation that explains everything you need to know. They are also offering to send you a free report explaining the #1 way to legally protect some of your money from the government http://www.wealthreporter.com/sa/fed-employees-trap-c.html?mvcode=212521
Wealth Reporter - The Golden Truth
www.wealthreporter.com
A major financial news source just published shocking details about a research report by two employees at the Federal Reserve Bank. The 36-page report applauds the use of “capital controls” in global markets.
4 days ago
Michelle If you have not read facts and reports gathered by Porter Stansberry, a Baltimore investment firm, concerning a 'capital control" law put into effect on July 1, 2014 by the Obama administration, do yourself a favor and click on the link below. A majo Read more ... r financial news source just published shocking details about a research report by two employees at the Federal Reserve Bank. http://www.wealthreporter.com/sa/fed-employees-trap-c.html?mvcode=212521
Wealth Reporter - The Golden Truth
www.wealthreporter.com
A major financial news source just published shocking details about a research report by two employees at the Federal Reserve Bank. The 36-page report applauds the use of “capital controls” in global markets.
6 days ago
Rahman
Porter Stansberry Research - The End of America
This is from Stansberry Research I didn t create i
11 days ago
Saumya The surest way to destroy someone is to give them something they don't deserve -Porter Stansberry
14 days ago
Svetlana
Alvaro Marino Aragon Quintero
New Obama Law (Bill "H.R. #2847") Could Usher in Collapse of U.S. Dollar On July 1st of this year, H.R. Bill #2847 went into effect. This bill has the potential to make millions of Americans poorer - overnight. Even some liberals have called it a " Read more ... nightmare and disaster." Get the facts to protect yourself here... Dear Fellow American, Hello. My name is Porter Stansberry. Fifteen years ago, I founded Stansberry & Associates Investment Research. It has since become the largest firm of its kind in the world. Today we have more paid subscribers than many of America's most popular newspapers, including Barron's and Investor's Business Daily. We specialize in financial research, and serve hundreds of thousands of paid subscribers in more than 120 countries. You may know of our firm because of the work we did over the last several years – helping investors avoid the big disasters associated with Wall Street's collapse. We warned people to avoid Fannie Mae and Freddie Mac, Lehman Brothers, General Motors and dozens of other companies that have since collapsed. We even helped our subscribers find opportunities to profit from these moves by shorting stocks and buying put options. To my knowledge, no other research firm in the world can match our record of correctly predicting the catastrophe that occurred in 2008, and the rebound that has occurred since then. The video presentation we created four years ago, to explain the financial crisis, and our thoughts on what would happen next, has become the most-watched on-line financial video in history, as far as we can tell. But that's not why I created this follow-up presentation. I reference our success and experience with Wall Street's latest crisis because we believe there is an even bigger crisis lurking –something that will shake the very foundation of America. And we believe it will accelerate at an extremely rapid pace, beginning in 2014, because of a devastating new law, that just went into effect this summer. Very shortly, I'll explain more about exactly what this new law does and why it could be harmful to every single American. I know that to most people, the situation seems to be getting better in America. Stocks have recovered all their losses. Real estate has rebounded. Unemployment and bankruptcies have dropped. But here's the thing: The unfortunate reality is that we are actually in a much more dangerous and precarious place today than we were six years ago. And that is why I've spent a significant amount of time and money in the past few months preparing this presentation. In short, I want to talk about a specific event that will take place in America's very near future... which could actually bring our country and our way of life to a grinding halt. As I'll explain in a moment, the law that just went into effect could dramatically accelerate this process. This looming crisis is related to the financial crisis of 2008... but it is infinitely more dangerous, as I'll explain in this letter. As this problem comes to a head, I expect there will be a near-complete shut-down of the American economy. Life as we have known it for more than 40 years will essentially cease to exist. Our governments on both the Federal and State level will shut down. Banks will not open. Businesses will at least temporarily shutter their doors. I expect we'll see martial law, enforced by the U.S. military. Believe me, I don't make this prediction lightly and I have no interest in trying to scare you. I'm simply following my research to its logical conclusion. I did the same when I tracked Fannie Mae and Freddie Mac's accounting. Also with General Motors, Lehman Brothers and the rest. And when I began giving this warning in 2006 no one took me very seriously... not at first. Back then, most mainstream commentators just ignored me. And when I presented my case and exposed the facts at economic conferences, they got angry. They couldn't refute my research... but they weren't ready to accept the enormity of its conclusions either. That's why, before I go any further, I have to warn you... What I am going to say is controversial. It will offend many people... Democrats, Republicans, and Tea Partiers, alike. In fact, I've already received dozens of pieces of hate mail. And... the ideas and solutions I'm going to present might seem somewhat radical to you at first... perhaps even "un-American." My guess is that, as you read this letter... you'll say: "There's no way this could really happen... not here." But just remember: No one believed me four years ago when I said the world's largest mortgage bankers - Fannie Mae and Freddie Mac - would soon go bankrupt. And no one believed me when I said GM would soon be bankrupt as well... or that the same would happen to General Growth Properties (the biggest owner of mall property in America). But again, that's exactly what happened. No one believed me in 2011 when I said the crisis would cause "riots in the streets." Then came the protests in Wisconsin, and the Occupy Wall Street movement all over the country. And that brings us to today... The same financial problems I've been tracking from bank to bank and from company to company for the last six years have now found their way into the U.S. Treasury. I'll explain how this came to be. What it means is critically important to you and every American... The next phase in this crisis will threaten our very way of life. The savings of millions will be wiped out. This disaster will change your business and your work. It will dramatically affect your savings accounts, investments, and retirement. It will change everything about your normal way of life: where you vacation... where you send your kids or grandkids to school... how and where you shop... the way you protect your family and home. I'll explain how I know these events are about to happen. You can decide for yourself if I'm full of hot air. As for me, I'm more certain about this looming crisis than I've been about anything else in my life. I am literally afraid for my family's future, and I have taken drastic steps to prepare for what I know must inevitably happen next. I know that debts don't just disappear. I know that bailouts have big consequences. And, unlike most of the pundits on TV, I know a lot about finance and accounting. And this is all coming to a head much, much sooner than most Americans think. Of course, the most important part of this situation is not what is happening... but rather what you can do about it. In other words... Will you be prepared when the biggest financial crisis in America in more than 50 years, hits? Don't worry, I'm not organizing a rally or demonstration. And I've turned down every request to run for political office. Instead, I want to show you exactly what I'm doing personally, to protect my family, and to protect and perhaps even grow my money, and how you can prepare as well. You see, I can tell you with near 100% certainty that most Americans will not know what to do when commodity prices – things like milk, bread and gasoline – soar. They won't know what to do when banks close... and their credit cards stop working. Or when they're not allowed to buy gold or foreign currencies. Or when food stamps fail... or their Social Security checks come to a halt. In short, our way of life in America is about to change – I promise you. In this letter I'll show you exactly what is happening, and why it is inevitable. Again, you can challenge every single one of my facts and you'll find that I'm right about each allegation I make. Then, I hope you'll take action for yourself. Will you act now to protect yourself and your family from the catastrophe that's brewing right now in Washington D.C.? I hope so. And that's why I wrote this letter. I'm going to walk you through exactly what I am doing personally, and what you can do as well. I can't promise you'll emerge from this crisis completely unharmed – but I guarantee you'll be a lot better off than people who don't follow these simple steps. But I'm getting ahead of myself just a bit. Let me back up and show you in the simplest terms possible what is going on, why I am so concerned, what I believe will happen in the next 12 months, and exactly what is going to happen when this devastating new law takes effect, later this year...
16 days ago
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