Wednesday, September 05, 2012
Total products supplied over the last four-week period have averaged 19.2 million barrels per day, down by 2.1 percent compared to the similar period last year. Over the last four weeks, motor gasoline product supplied has averaged about 9.1 million barrels per day, down by 1.0 percent from the same period last year. Distillate fuel product supplied has averaged 3.6 million barrels per day over the last four weeks, down by 6.2 percent from the same period last year. Jet fuel product supplied is 3.8 percent lower over the last four weeks compared to the same four-week period last year.Obviously not much heating oil is being bought. Trucking can't be that hot either. Still, stocks of distillate are very low, so I wonder what is going on? Propane stocks are way, way up. The other part of the release.
JPM Global PMI:
At 48.1 in August, down slightly from 48.4 in July, the JPMorgan Global Manufacturing PMI™ – a composite index produced by JPMorgan and Markit in association with ISM and IFPSM – remained below the neutral 50.0 mark that separates expansion from contraction for the third consecutive month. The headline index currently stands at its lowest level since June 2009.
Hmm, I wonder why June 2009 sounds so familiar? Was that the end of the recession in the US? Are the good folks at JPM trying to hint at something with this?
ISM data indicated that US manufacturing production contracted for the first time since May 2009.
I just have to tuck this in somewhere, so here it is. Look at this article about car loans and subprime loans in particular. And look at the LTVs!!!
I observed this first hand at a new Subaru dealership. The buyer was a woman with two children accompanied by her mother (to co-sign the new loan). She was trading in a perfectly fine two year old car for a brand new one. The salesman started off with the classic line "how much would you like to pay a month?". I felt like pouring my hot coffee over her head.
Right now they are getting huge returns on the securitiztion of the loans. The average subprime loan commands an interest rate of more than 15 percent on used cars!
There will be a price to pay eventually, but those sweet, sweet returns are so outsize that the train is rolling along.
An eye-opener, isn't it?
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