Economy

Scary Charts 05.06.20 — Auto Loans

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Subprime Auto Loans Blow Up, Get Very Messy

US-auto-loan-deliquencies-dollars-2020-q1

Delinquencies of auto loans to borrowers with prime credit ratings were near historic lows (0.27% in March), according to Fitch data. In the pre-Virus Good Times, it was the subprime loans – with credit scores below 620 – that were blowing up…

In mid-March, the world changed for subprime lenders. Delinquencies were already exploding in the Good Times, and now they’re in utter turmoil.

In addition, it is likely that prime loans are becoming delinquent as well, as many of these people too have lost their jobs – this includes dentists and other professionals with high incomes and big debts and lots of expenses and no savings, who’d suddenly had to close their operations, and their cash flow disappeared. If they fall behind on their debts, they’ll be subprime in a hurry.

 

Heads Up! Mega-Strike May 1st

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This May Day event follows a string of protests held by workers at Amazon, Instacart, Whole Foods, and Shipt over the last two months, whose employers have seen unprecedented profits as staffers on the ground handle cash sales and run deliveries. The demonstrations reflect growing unrest among the nation’s essential workers, who are entering their third month of duty on the front lines of the coronavirus pandemic.

Amazon, Walmart, Target mega-strike: Here’s what to know about the sprawling protest

Your shopping woes just got worse.

Leprino Foods shuts down Fort Morgan Plant

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The Leprino Foods plant in Fort Morgan was started in 1950 by Mike Leprino Sr. making mostly handmade mozzarella and Ricotta cheese. Now they make only mozzarella cheese for many different products. It is the nation’s number one Mozzarella cheese maker in the nation. The company has approximately 275 employees in their Fort Morgan plant. Their milk capacity is over 200,000 pounds per day. Whey production is about 60,000 pounds lactose per day. The products they produce are cheese blends in individually quick-froen (IQR) shreds and dices, Whey protein concentrate, Lactose 100 and 200 mesh, sweet cream and animal feed.

Helen H. Richardson/ The Denver Post

https://www.denverpost.com/2020/04/26/leprino-foods-closure-coronavirus-cases/

The unconfirmed number of Covid-19 infections is 80.

Who knows how many pizzas will be affected.

Rooms for Rent – Airbnb Crashes

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“No one anticipated that a global pandemic would require the country to shelter in place, upend the economy,” said Airbnb spokesman Nick Papas. “This is temporary: Travel will bounce back and Airbnb hosts—the vast majority of whom have just one listing—will continue to welcome guests and generate income.”

It’s not just the big hotel chains that are hurting.  For more insight read the full article at nakedcapitalism.com which contains absolute gems like the quote below.

It takes a lot of gall or a lot of ignorance to peddle a line like that.

My vote is IGNORANCE.

It will be a long time before travelers return to flying petri dishes and spend time in a rented room in someone else’s house.

Living Large

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Do the People Who Live in This House Have the Right to Be “Struggling”?

It is a nice house, but not an extravagant one. It sits next to a house in disrepair, and another house that is kept up. If you notice, there are two doors. The address 196 Lefferts Place, Brooklyn, New York, is divided into two homes, and the house I am talking about is Unit B, consisting of the upper floors of the structure. The cost to be the proud owner of 196 Lefferts Place, Unit B, is $1.395 million.

The greater fool theory in the US residential real estate market.

Have I mentioned lately why I live in Oklahoma?