âThe sector value of #A.I.-linked #companies is 17 times larger than the #marketcapitalization of the #dot-com era at its peak and over four times as large as the #subprime #bubble, according to MarketWatch.â www.nytimes.com/2025/10/26/o...
Opinion | It Is Trumpâs Casino...
#subprime
We may not have a federal budget, we may not have a state budget (Michigan), but what do we have? The bankruptcy of sub-prime auto-lender First Brands, following on the heels of the bankruptcy of sub-prime auto-lender Tricolor Holdings.
Yep, this is one way to run an economy and a nation. #economics #autodependency #subprime
https://www.reuters.com/business/autos-transportation/us-auto-bankruptcies-show-rising-credit-pain-low-income-households-2025-09-30/
"AI cannot do your job, but an AI salesman can 100% convince your boss to fire you and replace you with an AI that canât do your job, and when the bubble bursts, the money-hemorrhaging âfoundation modelsâ will be shut off and weâll lose the AI that canât do your job, and you will be long gone, retrained or retired or âdiscouragedâ and out of the labor market, and no one will do your job. AI is the asbestos we are shoveling into the walls of our society and our descendants will be digging it out for generations."
#OpenAI May Be in Major Trouble Financially
"I hypothesize a kind of #subprime #AI crisis is brewing."
https://futurism.com/openai-trouble-subprime
Let's hope for the best, the AI bubble bursting soon. Will this cause a major financial crisis or just hurt some venture capital companies?
đ
So, #Trump has announced this via a toot:
"Our great Mortgage Agencies, Fannie Mae and Freddie Mac, provide a vital service to our Nation by helping hardworking Americans reach the American Dream â Home Ownership. I am working on TAKING THESE AMAZING COMPANIES PUBLIC, but I want to be clear, the U.S. Government will keep its implicit GUARANTEES, and I will stay strong in my position on overseeing them as President."
Translation:
1. Fannie and Freddie will become ordinary commercial corporations, with owners, profit & loss statements, stockholders and analysts' ROI expectations, and all the crap that follows from that.
2. They will be expected to generate significant profits for their new, private owners.
3. There will be zero risk to the private owners, because the government will still backstop the mortgages that Fannie & Freddie underwrite.
Analysis: this is creating exactly the same incentive structure that resulted in the subprime mortgage meltdown of 2007-2008: they make money off every mortgage written, regardless of how risky it is, and they don't have to carry the risk themselves, so there's no reason to ensure the credit-worthiness of the applicants.
Prediction: in 5 years, or 10 years, an even bigger mortgage bubble will pop, leaving utter devastation. And the government will bail the bankers and private equity out, with the public's tax dollars.
#USPol #SubPrime #mortgage #meltdown #bubble #risk #incentive #profit
@thekenyeung @it-s-just-business-thekenyeung so uh, maybe "revenue per employee" is not a good metric for a company currently hemorrhaging $100 million per quarter on a portfolio of entirely uncollateralized subprime loans?
how does one write even a two paragraph piece about #Klarna without mentioning this?
â The Subprime AI Crisis
https://www.wheresyoured.at/subprimeai/
âMy concern is that I believe weâre in the midst of a subprime AI crisis, where thousands of companies have integrated generative AI at prices that are far from stable, and even further from profitable. â
jetzt höre ich schon wieder - mit Schaum im Ohr - von einer neuen europĂ€ischen GroĂbank. Alles jubelt
Wie war das mit too big to fail?
#subprime #vergessen #finanzwende
Someone has finally dropped the word "subprime" into a discussion of #mortgages and #ClimateChange.
" Thereâs a new kind of #ToxicAsset emerging in property portfolios. The number of homes in what you might call â#subprimeâ locations is rising and, in some parts of the world, property valueâlike a crumbing coastlineâis at risk of erosion. Lenders are getting noticeably more reluctant to lend against these assets."
https://www.wired.com/story/banks-are-finally-realizing-what-climate-change-will-do-to-housing/
Quit worrying. My #generationX is accustomed to all kinds of grotesque experiments being performed on us. The neolibs who invented the 401K already had a built in answer: personal responsibility. Right? It was just #boomers way of accomplishing exactly the same social outcome their generation had after the few of them conned the rest of them out of their retirements with all manner of fraud, be it legal (Bain Capital, S&L scandal, #subprime ) or otherwise (Bernie Madoff)
Q. Who is Don Hankey, the #billionaire who provided Trump a $175 million #Bond đ€
A. Wealthy #Usurer (an immoral lender) praying on people with high-interest loans đ€
The 2024 #Election will be a fight between the #Billionaires and #Democracy đ€
âDon Hankey, the executive whose company provided the bond, is a little-known mogul who built his $7.4 billion fortune through car dealerships and providing #subprime auto loans
That makes him richer than #Trump, whom Forbes estimates is worth $6.4 billion, including his multibillion stake in the newly public Trump Media & Technology Groupâ
https://www.cbsnews.com/news/trump-don-hankey-billionaire-175-million-bond-who-is-he/
BusinessInsider: the #billionaire whose company underwrote tfg's $175 million civil #fraud bond.
80 year old #DonHankey, oversees Hankey Group, which employs over 3,400 people and whose assets are worth around $22.5 billion, per Forbes.
The business consists of eight companies in the automotive, finance, technology, real estate, and insurance industries.
#trump #bond #subprime #lowcreditlimit #gop
This is the guy who funded Trumpâs bond đ€Łđ€Ł;
âKnight Specialty is owned by California businessman Don Hankey, whom MSNBC legal correspondent Lisa Rubin reports is known as âthe king of subprime car loansâ, specialising in lending to automobile buyers with poor credit ratings at high rates of interest.
âHankey repossesses around 250 cars every day and his debt collectors have been known to spoof their caller ID so it appears that they are calling from the local pizzeria,â Forbes wrote of him in 2015.â
Niemals in diesem Ausmass. Das liegt hauptsÀchlich an zwei wichtigen Faktoren:
* Die Vergabekriterien in den Staaten damals waren damals jenseits locker
* Eine solch exorbitante Spekulation mit gar Subprime-Krediten ist nirgends zu beobachten (CDOs, CDSs).
Dass es windige Typen zerlegen wird, ist sicher - siehe Benko. Aber das war bei solchen Zinszyklen immer so. Richtig gefÀhrlich wird es dann, wenn die Risiken gehebelt werden.
@asltf
https://en.wikipedia.org/wiki/Collateralized_debt_obligation
Wir haben literally DIREKT nach dem Platzen der #Subprime - #Immobilienblase in den #USA damit begonnen, unsere eigene Immobilienblase in #Deutschland aufzubauen.
Und mit "wir" ist die politische Steuerung hier gemeint.
Meine Fresse!
How Bait & Switch #Scams Have Doomed America's #RoofTopSolar industry Similar To Greedy A Hole Led Junk #SubPrime #Loan Asset Crisis That Doomed Financial Mkts Over A Decade Ago
Et geet an dĂ€r Geschicht net nĂ«mmen Ă«m e Promoteur a finanzielle Problemer, mee Ă«m dâGeschicht vun enger reegelrechter #Subprime-Kris zu #LĂ«tzebuerg: onregulĂ©iert FinanzmĂ€ert, riseg Rendidte-Erwaardungen (10% a mĂ©i), verrĂ©ckt PrĂ€isser an zum Schluss feelend Keefer. A Bummđ„ #luxpol https://www.reporter.lu/luxembourg-bulle-immobiliere-qubic-un-autre-promoteur-en-zone-de-turbulence/
The big short (le #film): #Clefs de lecture - Heu?reka HS#1
https://www.youtube.com/watch?v=HE_6h9LWVKw
> Avant d'aller voir « The big #short - Le #casse du siĂšcle », voici quelques clefs de lecture (sans spoilers) pour ĂȘtre certain de bien comprendre le film.
Help ProPublica Investigate the World of Subprime #Car Loans
==
Do you work for a #subprime auto lender â in customer service, collections, #loan funding, training or risk management?
Are you paying off a subprime car loan?
Are you a lawyer dealing with these issues in court? A regulator? An investor?
Our reporters want to hear from you:
https://www.propublica.org/getinvolved/help-propublica-investigate-the-world-of-subprime-car-loans?utm_medium=social&utm_source=mastodon&utm_campaign=mastodon-post
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