Amazing resiliancy of the debt Ponzi [WFC]

Mish explains on his new blog site in an article today how it is that the debt Ponzi has not collapsed yet.  Essentially, the banks are back into the deep sub-prime lending business making long term loans on new cars and even on used cars now.  He quotes Experian credit as saying, "The average new car loan has reached a record 67 months... The percentage of loans with terms of 73 to 84 months also reached a new high of 29.5% in the first quarter of 2015, up from 24.9% a year earlier.  Long-term used-vehicle loans also broke records with loan terms of 73 to 84 months reaching 16% in the first quarter 2015, up from 12.94% — also the highest on record."
 
The people taking on these loans now have the attitude of WTF, if I lose my job and can no longer make the monthly, I'll just walk away.  It used to be that new car loans were 36 or maybe 48 months.  Now the debt slaves happily sign up to an 84 month period of voluntary indentured servitude, all so they can experience that new car smell.


Let me tell you folks, we have escaped from nothing.  The piper will be paid.  The only question is when.  EWI strongly believes that the breakdown has already begun but I'm not so sure about that and there are a multitude of signals in the Wells Fargo chart that lead me to say this.  EWI is just looking at the DJIA and $COMPX charts which I must say are not the clearest wave counts in the world.  EWI should just admit that the risk in their count is not low but they are adamant.

I do think we are working on the final wave before a big reset, perhaps bigger than many believe is possible but that it's not likely in the collapse phase yet. 

• The reason for thinking that we could be in the last wave even though this chart does not have enough long term history to use a full EW count to verify it is because of the GOE formation which tells me that it was likely the penultimate wave in the series meaning that we should get a full motive wave following it.  
• The reason I think the WFC is important is that it is thought of as one of the strongest banks.  No debt Ponzi is going to rise when the lead banks are in collapse and no bank is going to skyrocket when the debt Ponzi collapses, their fates are joined at the hip.
• The reason I do not think the top is in is because of CWT.  Neither Avi nor EWI know anything about this and indeed I formulated this observation while many of you were watching in real time over the past few years.
• The reason I think that the pullback has probably bottomed is that we have a clear 3 wave pullback to to the lower horizontal rail which also happens to be exactly at an important horizontal support vertical.
• The reason I think that the pullback following blue 5 is going to be a complete disaster is because look where 5 wave up from current would take us, right to the triple vertical lines that have been programmed into the StrategyDesk tool that were never fixed even while the tool was not being depricated in favor of the much too confusing Think Or Swim tool.  Now look at the year scale.  We run full speed into that great chart barrier which signifies resistance not in a stock or in an index or even in the economy but rather in the whole system.  According to this tool, our economic system goes from December 2017 back to 1883.  Maybe the fact that blue 5 is perfectly modeled to peak there is just another coincidence.  But even if you believe in coincidences you have to admit that this is a little strange.

I don't think blue 5 is cast in concrete.  For example, if the lower rail broke down at the cyan arrow then we could relieve the pressure from this economic earthquake before it becomes big enough to do the Big Reset.  But we are our own enemies.  We are taking on perpetual individual debt, pumping the system higher and higher, never letting the free market clear out the excesses.  At some point everything could and likely will just freeze up like an engine run without oil for too long and then the pullback won't be gradual as shown in the red arrow above.  It will just collapse.

This pullback is likely the 2 year warning whistle.  If we bounce from here then use the time to build up your savings and your personal stock of food, guns and ammo.  This isn't crazy talk because I'm not crazy.  This is just good old fashioned risk management and that is something I claim to know a little bit about.  If  the worst doesn't happen then you will eat the stored food and you can always sell guns and ammo.  They tend to keep up with inflation.  But if you need these things things at some point and you don't have them, woe, woe, woe.  What if the supply chains collapse because the truckers who are put out of work by self driving trucks which were paid for by essentially free loans decide to sabotage everything?  What if China and the US go to war and China stops sending over container ships full of valuable goods and the store shelves go empty because of that?  There are a lot of very plausible what ifs on the horizon.