Hutch

Wall Street Breakfast: Must-Know News

Tales of the Oompa Loompa: episode IX

The Great Oompa Loompa stood before the masses and spoke “Behold the Oompa Loompa Empire that I have built. Behold the sweet smell of success. Our stuff don’t stink!”
Then the Oompa Loompa turned to his inner council and said ” What is this crap? We’ve got seconds for 80/20’s with FICO’s under 600! I wouldn’t approve that kind of loan for my own MOTHER!, a Congressman maybe, but NOT my mother.”
Councilor Sambol replied “Sire, It is the ‘Milk’ of the Biz”
Oompa Loompa said “Milk my @%$. It’s poison! We gotta dump this stuff fast.”
Then Councilor Sieraki said ” We must match what is offered by others or the empire will shrink” and Councilor Sambol said ” Tis true”
The Oompa Loompa said ” Well be more careful, and by the way, those pick-pays stink too!”
As his councilors left the throne room, the Oompa Loompa did swear unto himself ” I will steadily sell my stake in this idiot empire and stand ready to move to the Caymans where my awesome tan will shield me from the harsh rays of the tropic sun.
Hmmm...now where did I put Ken’s number?"

Whistling Past the Graveyard?

The government calculates savings by totaling up after-tax income and subtracting spending. The remainder is considered savings even if it is used to pay debts.

Consumers who can are paying off debt. So debt is shrinking (i.e. lenders assets are shrinking) and that which is left has a higher risk of default.