SEE UPDATE AT BOTTOM 6:43 AM SUNDAY -- We are being plundered. On July 2, 2025, the US National Debt was $36.2 Trillion. Yesterday, September 19, it had risen to $37.5 Trillion. Up $1.3 Trillion in 79 Days.
Prior to this three month period, the US National Debt rose $1 Trillion in the 90 Days prior to that. Before that, the US National Debt rose $1 Trillion in 113 days. See the pattern? 113 Days, then 90 days, now 79 Days. That’s the fastest debt spiral in history, and it’s only accelerating.
The government is spending itself (and us) into oblivion. Worse, mathematically, there is no way to stop the debt spiral it before it completely collapses the entire system. We are in the end stages of the fiat money printing "system."
When that collapse happens, there won't be any Social Security Payments, No Medicare money, no SNAP/EBT money, no Medicaid at the state level. ALL OF IT WILL STOP because there's no money left.
I am told the U.S. Dollar lost ten percent (10%) of its value in THIS MONTH alone. It gets worse. Much worse.
PRECIOUS METALS
Did you notice Precious Metals Prices yesterday? Record highs.
Close:
- Kitco......Gold 3,684.00...Silver 43.01
- JM.........Gold 3,698.58...Silver 43.31
- APMEX...Gold 3,699.93...Silver 43.33
Want to know why?
It has been reported to me that, according to industry insiders, financial giant Morgan Stanley, told their wealthiest clients that Morgan Stanley recommends changing the distribution of portfolio investments from the traditional 60/40 . . . . 60% Stocks and 40% Bonds, to a new formulation: 60/20/20 . . . . 60% stocks, 20% Bonds, and . . . . 20% Gold.
Why?
Why would one of the world's largest financial expert firms, tell their wealthiest clients to make a change of this magnitude? Why tell them to get rid of HALF of their Bond holdings????
Traditionally, Bonds have been the absolute safest - and admittedly lowest-interest yielding -- financial instruments. Bonds are the very foundation of matters financial. Always have been.
Why, then, would a giant financial company tell wealthy investors to get rid of half their Bond holdings???
It turns out, it all began with a little Bankruptcy filing last week . . . . a strange and now, worrisome, filing.
A company that most of us have never heard about, TRICOLOR Holdings, started falling apart incredibly fast - within days.
Tricolor Holdings, which operated more than 60 car dealerships across six states, filed for Chapter 7 bankruptcy.
Notice the Bankruptcy Chapter? Chapter Seven (7) not the usual Chapter Eleven (11). That means they have absolutely no hope of re-organizing and continuing in business; they are filing for LIQUIDATION.
This is unusual for most companies and almost unheard of in financial companies. After all, there's always something to salvage, right? Not this time!
It happened fast and with almost no warning at all. Early last week, media outlets learned that the vast majority of Tricolor's workforce, (which includes Tricolor Auto, Ganas Auto, Ganas Ya, and Lucky Lane Motors), had been told they were being placed on temporary unpaid leave.
Employees were told they'd hear by October 6 whether they still had jobs.
Meanwhile, Tricolor CEO Daniel Chu quietly resigned from Origin Bank's Board of Directors.
Origin Bank was a lender to Tricolor, and has $30 million tied up in the company, according to Barron's.
By Monday evening, media outlets received calls from multiple insider sources warning that Tricolor's bankruptcy was imminent. Then things got weird, fast.
Behind the scenes, Bond traders told media outlets that the auto asset-backed securities issued by Tricolor started nosediving, eventually reaching as low as 12 cents on the dollar. "Auto Asset-Backed Securities." You know . . . . BONDS. Bondholders were not holding on to the bonds to see how it all worked out, they were DUMPING those Bonds as fast as they could, at almost any loss. Something was VERY wrong with this picture. This doesn't happen; even in Bankruptcies.
Court filings show the company listed more than $1 billion in liabilities and identified over 25,000 creditors.
INTRIGUE
Last week, Fifth Third Bancorp disclosed a potential $200 million loss from "alleged fraudulent activity" at an unnamed commercial borrower.
Bloomberg quickly identified Tricolor as that borrower, and noted that JPMorgan Chase Bank and Barclays Bank were also potentially exposed.
The alleged scheme involves double-pledging, which is using identical loan portfolios as collateral for separate warehouse credit lines with different banks. Commonly known as "Fraud."
At a high level, lenders like Tricolor originate auto loans for its customers, which are grouped into portfolios.
These portfolios can be used as collateral to obtain financing, such as warehouse credit lines (short-term loans banks provide to finance companies to fund operations).
In a double-pledging scheme, the lender pledges the same auto loan portfolio to multiple banks as collateral for different credit lines.
Each bank believes it has exclusive claim to the portfolio’s cash flows or value, unaware that other banks have been promised the same assets.
It gets even worse.
Since 2007, Tricolor has specifically marketed to customers "excluded from traditional banking systems." You know, customers like ILLEGAL Immigrants.
But the business of underwriting loans for this cohort (typical among smaller subprime lenders) has become riskier during President Donald Trump’s second term.
In a bond deal this year, Tricolor disclosed that 68% of its borrowers had no credit score, and over half didn’t hold a driver’s license.
And they lent these people money???????? Is that nuts, or what?
Still, the main reason for Tricolor's collapse seems to be the alleged fraud, which is now being investigated by the Department of Justice.
It is highly likely that people will go to jail for this, but jail doesn't solve the money problem. The damage is already done and it cannot be undone. The money is already gone. Real Banks will take real financial losses from this. BIG LOSSES. Real people who hold TRICOLOR Bonds, will lose their money. Gone. POOF!
A WARNING SHOT FROM THE SHADOWS
I think Tricolor’s Collapse, is a warning shot from the shadows. Now, I am NOT a Licensed Financial Expert. I have absolutely no special knowledge or training in matters financial. YOU should not make any financial decisions based on what I write or say. You should consult with a Licensed Financial Expert before making any financial transactions based on what you're reading here.
Having said that, when word came out about Tricolor's strange Bankruptcy filing, most people didn’t even blink.
A small subprime auto lender going bankrupt in 2025? Hardly headline news in a market that’s rallying, right?
But for those of us who still carry 2008 PTSD, the story of Tricolor triggers a deeper instinct to look twice. Ask why. Then ask again.
Tricolor’s AAA bonds (rated 2 months ago July ’25) just plunged—par to 78¢, lower tranches to 12¢.
What does this mean? Well, Lookie, lookie here: The Rating agencies are partying like it’s 2008, slapping AAA Ratings on junk. Again. Just like before the Great Financial Collapse of 2008.
I think that what we're seeing is, in matters financial, the music’s stopped. Subprime auto debt tied to fraud is crashing fast.
Same playbook as 2008, new bubble.
This is straight out of the 2008 financial collapse playbook: "Give junk debt a fancy rating, package it into securities, pass the risk down the line... hope nobody blinks."
What Went Down?
Tricolor wasn’t just any TINY used car dealer.
They targeted a very specific, very vulnerable segment: immigrants without credit history or social security numbers.
They sold them cars and financed them at subprime rates, then packaged those loans into asset-backed securities (ABS).
Sound familiar? Those asset-backed securities, they weren’t tiny. They weren’t harmless.
And they’re not coming back, they’re liquidating, not restructuring.
CREDITORS?
As of this morning, Saturday, September 20, 2025, I am told that JPMorgan Chase, Fifth Third Bank, with Origin Bancorp, Renasant Bank, and Triumph Financial, now also reporting exposure, looking at a Total Exposure of $20B Yes, you read that right: TWENTY BILLION DOLLARS.
Why It Matters
This isn’t about one company dying quietly.
This is about where the cracks in the financial system appear first.
And right now, they’re appearing in lower income credit channels, just like they did last time in 2008.
Subprime auto loans aren’t a systemic bomb, they’re small. But the asset-backed-securities aren't small.
The demographic these sub-prime loans serve isn’t small.
Nearly 1 in 5 US workers is foreign born.
Half of those are Hispanic.
They’re young, mobile, and fuel key sectors of the economy.
So when lenders like Tricolor vanish, it’s not just a credit story; it’s a consumer demand story.
A mobility story.
An economic signal, flashing in red. Right now. Today.
If you’re thinking “This Isn’t 2008” you’re right, and you’re wrong . . .
Few people think this is Great Financial Crisis 2.0, but I DO! I think this is the Canary in the financial Coal Mine, and it just fell over dead.
To those people dismissing this concern altogether . . . that’s how people missed the storm the first time.
Back in 2008 it started in mortgage subprime.
Now, it’s auto subprime.
Back then, no one thought $1B in loan exposure mattered.
Until it did.
I believe this is the start of another financial crash. A very big one. Huge!
I am saying, this is the wrong time to be blind.
Final Thought
Markets are euphoric. The Fed is still whispering “more fuel.”
But beneath the surface, a lender just imploded, one tied to real people, real credit, and real economic vulnerability.
Watch closely.
Moments like this often show us where the system is weakest.
Which brings me back to Morgan Stanley and what they reportedly told their wealthiest clients: Dump half of your Bond holdings and go to a 60/20/20 portfolio mix. Sixty percent Stocks, twenty percent Bonds and Twenty percent Gold.
Does Morgan Stanley THINK there is more Bond Fraud? Or does Morgan Stanley KNOW there is more Bond Fraud?????
If I am right, the twenty percent of Gold that Morgan Stanley is reportedly telling its clients to have, will be the only thing people have left when this is all over.
And that's only if they hold the physical Gold themselves, and don't fall for the trap of buying "paper" gold that someone else holds. Because every ounce of that "paper" gold, has already been sold to 500 different "owners."
BIGGEST SCREW-JOB?
The people who have loans through TRICOLOR, started coming out to go to work this week only to find their car -- gone. The banks are re-possessing all the cars. I'm told "ALL OF THEM" are being grabbed by repo companies because the banks do not know if the collateral (the car) has been pledged to some other bank. All the TRICOLOR loans are now moved to the category of "non-accrual." Since possession is nine-tenths of the law, the banks are already grabbing the cars! Even from people who are paying the loans!
I believe the music is stopping in the financial sector - again. I believe "this is it."
Federal Government over-spending and Financial Company reckless lending has done it to us -- again.
( All the information in this story was broadcast LAST NIGHT on the Hal Turner Radio Show. You should tune-in to the show Monday thru Friday from 9:00-10:00 PM because you often get the news from the radio show BEFORE you get it on this website.)
UPDATE 6:43 AM EDT SUNDAY --
Additional information is now coming out about this TRICOLOR HOLDINGS situation and none of it is good.
Reports are saying a Hedge Fund called "Clear Haven" has very big exposure to the TRICOLOR HOLDINGS Bankruptcy Liquidation.
It is also claimed in these reports that "Clear Haven" not only has Auto-Backed Securities (ABS) but also holds a number of Residential Mortgage Backed Securities (RMBS) from many of the very people who bought cars from TRICOLOR.
Many of these people have SELF-DEPORTED, and took the cars with them across the border - meaning the asset used for Collateral for the auto loan - is out of the country and gone.
Worse, these folks seem to have also walked-away from their Mortgages, which makes the exposure for Clear Haven, even worse.
Those who did not have Mortgages, but who were merely Renting, have also walked away from the Rental property, leaving empty property.
They are leaving behind more than just their auto loans, their mortgages are now abandoned or rental property has a new vacancy their land lord will have to fill with a shrinking demographic in a self enforcing negative feedback loop, as more immigrants self-deport or are forcibly deported.
This could throw Mortgages into default because Rental Property Owners can't rent-out those now-empty homes as the immigrants are self-deporting! Many of those Mortgages are done through Hedge Funds.
This situation is starting to feel like July 31, 2007 when 2 hedge funds in Bear Stearns collapsed in Bankruptcy, sparking off the Great Financial Crisis. Bear Sterns filed Bankruptcy
The two hedge funds were the Bear Stearns High-Grade Structured Credit Strategies Fund and the Bear Stearns High-Grade Structured Credit Enhanced Leveraged Fund.
The funds were heavily invested in collateralized debt obligations (CDOs) based on subprime mortgages.
When the housing market declined, the value of their mortgage-backed securities plummeted. By mid-July 2007, investors were notified that the funds had lost most, if not all, of their value.
The collapse of the hedge funds was the beginning of the end for Bear Stearns, but it took several months for the parent company to fail:
Initial bailout (June 2007): Bear Stearns provided a $3.2 billion collateralized loan to rescue one of the funds, but it was not enough.
Worsening reputation (late 2007): As the mortgage crisis deepened, the failure of its hedge funds caused Bear Stearns' profits to plunge and its credit ratings to be downgraded.
Liquidity crisis (March 2008): In March 2008, rumors of cash flow problems led to a run on the bank, as hedge funds and other clients pulled their money. This triggered a severe liquidity crisis.
Forced sale (March 2008): With the firm facing imminent bankruptcy, the Federal Reserve helped orchestrate a deal for its acquisition by JPMorgan Chase.
