News From The Front  


Prior dewdrops of wisdom from the illustrious Sage of Wexford are retained for posterity below:

News from the Front:  November 15, 2017

Probably my last update of 2017, unless something major happens before year-end, like Fiscal Responsibility coming back into vogue in Washington, but the return of Halley's Comet tomorrow would be more likely.  The Debt Monster will be kicked down the road again, is my best guess, so that when he comes back into town in the quarters ahead with interest rates rising worldwide due to massive defaults, he will be more ferocious than ever at robbing the younger generations today of their American Dreams and their debt-inflated Standards of Living.  These Bozo's that we put into office are like a nest of termites progressively eroding all structures of the United States:  societal, economic, financial, healthcare, and everything in between.  We can be thankful this November 23rd that the coming FINANCIAL PANIC has not occurred in Full Mounty Mode yet, so that the majority of Americans and planet dwellers can continue to munch on a bounty of hot media air and keep their collective heads in the sand as to the coming calamity.  Most are woefully unprepared for what is coming, whether it be financially or emotionally.  But the signs of financial strain, look no further than the performance of Junk Bonds Stateside as one prime example, are everywhere for the informed and awake observer to see.


This means that this corporate subset of unduly leveraged and very questionable/ credit-compromised borrowers are watching their less-than-subprime debt get whacked on price and require higher yields from brain-dead investors in order to unload this toilet paper.  I almost have to chuckle how investors have piled into Junk Bonds for years now, thinking there is a free lunch to higher than Fed-induced Zero Yields at the banks and money markets.  They are finding out that the term, "JUNK", means what it says, and the risk of owning this stuff is actually much, much greater than the Fed-suppressed compression of yield spreads from investment grades to junk grades, never more narrow, would imply!!  PLEASE TAKE A BOW ONCE AGAIN FEDERAL RESERVE MEMBERS FOR HERDING THE SHEEP INTO THE SLAUGHTER HOUSE CORRAL.  These knuckleheads will be retired on bloated pensions as the crapola hits the fan.

Note how the other class of brain-dead investors, STOCK INVESTORS, per the S&P 500 index graph in blue, continue to party on like the music will never stop .... NO MATTER WHAT NEWS OR EVENTS COME TO BE.  Weeeeeee, make sure you put your arms up in the air as the rollercoaster hits the DOWN SLOPE, kiddies.  I am being purposely disrespectful and snide of today's global financial market investors because even a rat can be trained by repetition to find the end of the maze or the cheese.  THESE GLEEFUL PARTIERS HAVE NO RECOLLECTION OF PAST EVENTS, LIKE OCTOBER OF 2008.  Got Gold?  Got Silver?  Got Ammo?  Got Cash buried in the woods at a 3,000 ft. altitude?

Yields are going up around the world, even if they still remain historically depressed and artificially maintained by a gaggle of Central Bankers that I am putting on the first vessel to Mars.  They probably won't make it due to their utter lack of fortitude to do the right things for all but the One Percenters and Sovereign Debt Issuers, but no great loss.  I know we already have way too much space junk out there now, but this may be the best way to save the planet from extinction.  Oh, and let's put Al Gore on that vessel also since the only man-made global warming that is occurring is when he opens that overweight and overpaid mouth of his.  I am surprised he does not need a cargo-type plane to fly everywhere, like a C10, preferably the Russian version with all of the propellers that are prone to failure.

But Quantitative Tightening is something we will have on our collective Thanksgiving Tables, served up with a helping of Loan Standard Tightening, Subprime Auto Loan Defaulting, Student Loan Defaulting & State/ Country Bankrupting that will assure the roll-over of the Global Economy is another trend change well in place.

For example, in the Third Quarter of 2017, subprime auto loans issued by finance companies (vs. banks & credit unions) had a 9.7% delinquency rate of payments past-due by 90 days or more.  The previous record of 10.9% in Third Qtr. of 2009 will likely be surpassed in the months and quarters ahead and probably be north of 15% before next winter.  Notably, of the $282 billion in subprime auto loans outstanding today, these loosey-goosey, Wild West finance companies have originated approx. $209 billion or a whooping 74% of the total.  TALK ABOUT AN ACCIDENT WAITING TO HAPPEN!!!  And we are not talking about a car accident here, but Tens of Billions of Dollars going down the drain and not down the pike.  And this is during an economic period that the Fed and the politically-leaning charlatans reporting data out of Washington label as a solid performer as to GDP growth and employment!!!!!!  These already compromised borrowers with stinko credit ratings are also the most likely to run into hard economic times with early-cycle job losses and other defaults (H-O-M-E) as the Obama Depression, Phase II really starts strangling everything with a pulse.  Bush was blamed for everything during the Great Divider's early rule (like the sun coming up in the East), so let's spread the Blame Game as it should be spread.  Obummer ran us into a ditch just like he accused Bush of doing.  Na Na Na Na Na.

And even though the Sage can see years into the future (with one eye closed!), I have no idea what this new Fed Chair anointed guy Powell will do with monetary policy, but my bet is that he will screw things up even more like Greenspan, Bernanke, and Yellen have done before him ..... AND with a vengeance.  When the crap really hits the fan in the not-so-distant-future, he will print money like all of his incompetent predecessors ...... pushing us toward a Weimar Germany moment with a dollar not worth a plug nickel.  Get that wheelbarrow ready to buy a loaf of bread!  That does not mean that he will not continue to raise interest rates as fast as possible IN THE INTERIM in order to have a cliff on rates from which to not only jump off of, but begin to reduce rates from.  Can't reduce rates with any effect on the American or global system from 1.25%, can you???  WE ARE DOOMED BY THE INCOMPETENTS WE SELECT TO RUN THE ASYLUM.

As to gold and silver, let me just say that Silver is telling the entire story as to where the Precious Metals are likely to go next.  While many "trading experts" out there point to the C.O.T. positions of Speculators as way too high on the Long Side to allow any near-term rallies in either metal in the short-term, TELL ME HOW MANY TIMES SILVER HAS BEEN KNOCKED BELOW $17 PER OUNCE OVER THE LAST 6 WEEKS AND HOW MANY TIMES IT HAS POPPED RIGHT BACK UP AND OVER THAT THRESHOLD.  This is not a sign of current or impending weakness, it is a sign of strength!  Silver and Gold are being accumulated around the world, even if American investors are too fickle (or thick) to realize a winding spring when they see one.  Physical demand is strong around the world for both precious metals, even if there are signs of weakness in demand Stateside in a country where the inhabitants are used to instant gratifications a la FANG stock & Bitcoin rockets, and were absent the day that the lesson on U.S. bank note failures was taught in school.  U.S. coin of the realm has failed many times during our brief history on this planet, AND IT IS DESTINED TO FAIL AGAIN IN THE MONTHS AHEAD.  It will fail as Debt Securities across the board begin to default in one fashion or the other.  The highest percentage of debt outstanding in the world is denominated in ..... wait for it ..... D-O-L-L-A-R-S!!!!

Buy when there is blood in the streets.


GOBBLE, GOBBLE, GOBBLE ..... GOD knows there are more than enough Turkeys running & ruining our country.  Happy Thanksgiving, and GOOD NIGHT.

,  soon ..... regrettably, to be proven correct.



News from the Front - ARCHIVE IV


The information and opinions contained within WCM's "News From The Front" have been compiled or arrived at from sources believed to be reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness. Neither Wexford Capital Management, David W. Young or the Company's agents or assigns accepts any liability whatsoever for any loss arising from the use of this free newsletter or its contents. All periodic "ezine" articles posted on are strictly for informational purposes only. No statement or expression of any opinions contained within this electronic newsletter constitutes an offer to buy or sell any financial securities or surrogates mentioned herein. Readers are encouraged to conduct their own research and to perform extensive due diligence and/or obtain professional financial advice before making any investment decision, especially in the exceptionally volatile asset markets of today.  WCM's Principal, David W. Young withdrew the Company's Registered Investment Advisor status with the S.E.C. and the Virginia Division of  Securities in May of 2005 and no longer offers financial-asset managed accounts receiving continuous supervision of assets.  WCM's principal, David W. Young, was a Registered Investment Advisor in good standing from October, 1985 to May, 2005.  Furthermore, the company does not engage in any fee-based or compensatory provision of financial or investment advice.  The brokering of tangible assets sales via U.S. Rare Coins, Precious Metals Bullion, and Fancy Colored Diamonds is the sole business of Wexford Capital Management and the company cannot be construed under any measure as being in the "financial newsletter business".


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