zondag 4 juni 2017

A Bird's-Eye View Of American's Largest Auto Port

In 1963, the Port of Baltimore was the first port of entry for the Volkswagen Beetle. We have to thank the Germans for supplying the ‘Conscious Revolution’ of the 1960s with transportation. On a side note, while everyone was getting high in their new Volkswagen, the Globalist started their grand scheme of stripping America of her wealth, ending the generational cycle called ‘the American High’ (1946-1964). What followed next is 50 years of deindustrialization and the decay of America’s inner-cities...


While deindustrialization crushed Baltimore City, Maryland, the powers to be constructed the Port of Baltimore to be America’s largest auto port of entry. The reason for it, is due to the area’s strategic positioning of 150-miles inland than any-other Mid-Atlantic port, which means shorter distances between critical links in the supply chain. Fast forward to today, where decades of debt has peaked Motor Vehicle Loans at $1.2 Trillion signaling a possible generational top in the auto market. According to FT, US banks are now fearing a subprime bubble in auto loans, which is similar to the subprime mortgage crisis. On the chart below, notice how the 1960’s started the upward cycle in auto loans? Interesting to say the least, baby boomers needed transportation...


The scariest chart of the auto market is the declining momentum in Total US-Vehicle Sales. Even Ford admits,”We Think Sales Have Reached A Plateau”. What goes up must come down...


So far in 2017, Ford has proved to be right on the conversation of “plateauing” auto sales, but fails to mention what happens next.. That is an interesting question, if you believe in gravity of what goes up must come down. The Auto Inventory/Sales Ratio breached new high in March 2017 alluding to more building pressures in inventory. This signals a weak demand pull from US consumers...


According to Gordon T. Long of MATASII, we have a massive problem looming and the auto industry knows it. We are fully expecting broad based problems to emerge over the next 18 months in multiple areas of the auto industry:
* The US Dealership Network,
*Auto Manufacturers,
*Lenders & Financiers,
*Securitization (ABS, CLO, Synthetics etc) Investors
Before the auto market breaks, I want to share with you a bird’s-eye view of America’s largest auto port located in Baltimore City, Maryland....