Remember when housing prices rolled over in 2006, the sub-prime mortgage industry began blowing up too? After all, the only reason those loans were being made was because housing prices were going up. So once housing rolled over, it was only a matter of time before the sub-prime mortgage bankers blew up.
Well, the same thing that happened to housing in 2006 is now happening in automobiles: prices are rolling over. So the value of the underlying assets is now falling.
Even worse, total vehicle sales have ALSO rolled over. And this is happening despite ridiculous offers such as 0% down and interest free financing.
But it’s probably nothing. I am Janet Yellen has everything under control…