The Flip Side

The wry side of finance… and more
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20-May-2018 Intellasia | The Flip Side | 1:30 AM
2017 was a banner year for many things - record low volatility, record high complacency, and record amounts of money printed by the world's biggest central banks, among many others. All [...]
Source: Zerohedge
20-May-2018 Intellasia | The Flip Side | 1:00 AM
Authored by Andrew Korybko via Oriental Review, The steady deterioration of relations between these two erstwhile long-time allies is continuing with the latest political crisis between them that was sparked by the US’ decision to limit the distance that Pakistani diplomats in DC could travel outside the city.
Islamabad imposed reciprocal measures against American diplomats located anywhere in the country, and the situation has since remained frozen, but is nowhere near resolved. While American-Pakistani relations have been worsening for [...]
Source: Zerohedge
20-May-2018 Intellasia | The Flip Side | 12:30 AM
Just six months after a Leonardo painting sold for $450 million, smashing all auction records, this week the world's record excess liquidity once again underwent a "non-sterilized intervention", when two [...]
Source: Zerohedge
20-May-2018 Intellasia | The Flip Side | 12:00 AM
Authored by Wolf Richter via WolfStreet.com, Subprime is calling... In the first quarter, the delinquency rate on credit-card loan balances at commercial banks other than the largest 100 – so at the 4,788 smaller banks in the US – spiked in to 5.9%. This exceeds the peak during the Financial Crisis. The credit-card charge-off rate at these banks spiked to 8%. This is approaching the peak during the Financial Crisis. A sobering set of numbers the Federal Reserve Board of Governors releasedthis afternoon. But overall, across all commercial banks, including the largest banks with the largest credit-card loan balances outstanding, the delinquency rate was 2.54% (not seasonally adjusted). This overall rate was pushed down by the largest 100 banks, whose combined delinquency rate in Q1 was 2.48%. These large banks have been offering appealing incentives to consumers for years, and they’ve been going after consumers with the higher credit ratings, and they’ve been following good underwriting practices – having not yet forgotten the lesson from the last debacle – and this conservative approach is now helping to keep losses down. But the thousands of smaller banks couldn’t compete with those offers, and so they got deeply into subprime cloaked in sloppy underwriting. This way, they were able to reel in new credit-card customers that the big banks didn’t want, and those customers needed the money and charged up their new cards in no time, and the interest rates of 25% or 30% looked good on the banks’ income statement and helped maximize executive bonuses, yes even at smaller banks. But turns out, those banks had reeled in the most fragile customers and had eagerly doused them in irresponsible levels of debt at usurious interest rates – and now what? These customers won’t ever be able to pay off the balances or even pay the interest. For many of them, there’s only one way out. This caused the delinquency rate to spike from 3.81% to 5.90% in just three quarters. This chart shows delinquency rates for the largest 100 banks (blue line) and for the remaining 4,788 banks (red line):
Credit card balances are deemed “delinquent” when they’re 30 days or more past due. The rate is figured as a percent of total credit card balances. In other words, among [...]
Source: Zerohedge
19-May-2018 Intellasia | The Flip Side | 11:30 PM
The Russian military plans on sending Tu-160 supersonic bombers to its sub-Arctic, eastern maritime borders this year, Lieutenant-General of the Russian Aerospace Forces, Sergei Kobylash, said Friday. “This year we are planning to [...]
Source: Zerohedge
19-May-2018 Intellasia | The Flip Side | 11:23 PM
Friday's outing of longtime CIA and MI6 asset Stefan Halper as an FBI asset sent to infiltrate the Trump campaign has social media abuzz today. Reactions have ranged from celebration [...]
Source: Zerohedge
19-May-2018 Intellasia | The Flip Side | 11:00 PM
Authored by Tom Luongo, People hate change.  They also allow themselves to be swayed by the first or second thing they hear about something new that confirms their bias for or against it.  Once that happens, they simply run with that as a justification for why they don’t like something and never move off that position.
In libertarian circles, private roads is the wedge issue to keep people statists.  Fear over who will maintain the roads is a classic rhetorical technique used by statists to prove libertarianism is [...]
Source: Zerohedge
19-May-2018 Intellasia | The Flip Side | 10:30 PM
Coined shortly after the great financial crisis of 2007–2009, the so-called “gig economy” or “sharing economy” refers to the increasing list of companies like Airbnb, Doordash, Etsy, Lyft, Postmates, TaskRabbit, [...]
Source: Zerohedge
19-May-2018 Intellasia | The Flip Side | 10:07 PM
Submitted by Capsec Advisors Amid a laser-like focus on ramping Model 3 production, a new emphasis on cost control and an initiative to eliminate any contractor or consultant that is not [...]
Source: Zerohedge
19-May-2018 Intellasia | The Flip Side | 9:34 PM
It has been an odd time in capital markets: on one hand rising rates, a surging dollar, and a 4 year highs in oil have wreaked havoc on Emerging Markets, [...]
Source: Zerohedge
18-May-2018 Intellasia | The Flip Side | 3:51 PM
According to Porter: "If, like Berkshire Hathaway, you're interested in the highest possible long-term compounding results, then the answer isn't railroads and utilities..." [...]
Source: The Daily Crux
18-May-2018 Intellasia | The Flip Side | 3:44 PM
Today's incredibly low VIX reading could mean complacency or it could mean a coming downturn... Are you prepared? [...]
Source: The Daily Crux