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3 Signs We’Ve Reached ‘The Top’ In The Financial System

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https://www.sovereignman.com/trends/3-signs-weve-reached-the-top-in-the-financial-system-18335/

1) The $75 billion loan

AB InBev just secured an astonishing $75 BILLION loan to buy rival SABMiller.

This is the biggest commercial loan in the history of the world, roughly equivalent to the GDP of Azerbaijan.

It’s incredible that anyone is able to borrow an amount like this, let alone at the low rate of just 1.1% above LIBOR.

It’s not a stretch to think that we may look back at this and say, ‘that was the top… what an obvious example of how much money central bankers have printed.’

2) The junk bond collapse

Back in 2013, the yield on ‘high yield corporate bonds’ aka junk bonds dipped below 5% for the first time in history.

It shouldn’t have taken a rocket scientist to figure out how absurd that was, but now that the trend is reversing and the junk bond market is stalling investors are losing their shirts.

One hedge fund that had invested heavily in junk bonds just suspended redemptions for its investors, something only really done in times of crisis.

This could be the historical watershed moment that signals the beginning of the end of our massive financial bubble.

3) The POPPY Loan [my favorite]

San Francisco Federal Credit Union wants to help its customers buy unaffordable homes in the astonishingly overpriced region of northern California.

So they just rolled out a new loan program called the Proud Ownership Purchase Program for You, or POPPY for short.

POPPY loans allow customers to borrow up to $2 MILLION with absolutely no money down.

And no, I am not making this up.

$0 down. $2 million. At 4% interest.

What could possible go wrong.....

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Start with the word POPPY and invent a rambling name to suit the initials. The word Poppy isn't exactly associated with positive outcomes.


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On the other hand if you want to offload a lot of debt.

Edited by billybong

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3) The POPPY Loan [my favorite]

San Francisco Federal Credit Union wants to help its customers buy unaffordable homes in the astonishingly overpriced region of northern California.

So they just rolled out a new loan program called the Proud Ownership Purchase Program for You, or POPPY for short.

POPPY loans allow customers to borrow up to $2 MILLION with absolutely no money down.

And no, I am not making this up.

$0 down. $2 million. At 4% interest.

I knew that San Francisco was a liberal city but not as liberal to dish out up to $2m in mortgages! Good grief. :blink:

Is it me or do Americans come up with the most naff abbreviations for things - such as POPPY in this example.

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4) Government desperately scrabbling around to include things that are already there in GDP. Ie, prostitution, drugs trade etc.

IMO the whole childcare thing is a part of this. Government wants to appear 'pro-woman' (though id argue trying to split biological mothers from bonding with their children is both anti child and anti woman in the long run) but the real reason is government wants to tax the service (which they cant do if its the mother looking after her own child) and have it appear in GDP. Billions to be 'added' (and yet no actual additional productivity)

Wait until if you see a crime in progress and alert the police they add an 'imputed value' for 'security services' you provide. Or if you write a food review on a website, added value there too. Basically, by simply being alive we are GDP producers, according to statisticians.

Its over. GDP means nothing if this is how they count it.

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I knew that San Francisco was a liberal city but not as liberal to dish out up to $2m in mortgages! Good grief. :blink:

Is it me or do Americans come up with the most naff abbreviations for things - such as POPPY in this example.

They are often naff but strangely accurate and apt.

TARP (Troubled Asset Relief Programme) is an example. It's also short for tarpaulin - which covers up stuff that you want to hide or disguise.

Hiding stuff in plain sight.

Edited by billybong

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They are often naff but strangely accurate and apt.

TARP (Troubled Asset Relief Programme) is an example. It's also short for tarpaulin - which covers up stuff that you want to hide or disguise.

Hiding stuff in plain sight.

Ha ha...I like that one. :lol:

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^ so anyone could do that. Soon it'll be expected to be included in the price for freeholders. Also sell the air above any property.

To be fair up/dowm/sideways extension potential has always had an effect on property valuation but the article seems to be describing a slightly different scenario where the extensoin (potential) is bought by an outside party. Presumably it bumps up the valuation of surrounding houses for their basement potential - or at least gives them a firm price guide.

It's only worthwhile with mega crazy house prices - and in an oligarch city..

Edited by billybong

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