Subprime Auto-Loans 2.0

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…

“I Don’t Believe We Will See Another Crisis In Our Lifetime.” Janet Yellen, June 27, 2017

 

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About avirginiapatriot1776

I hope we have once again reminded people that man is not free unless government is limited. There’s a clear cause and effect here that is as neat and predictable as a law of physics: as government expands, liberty contracts. — Ronald Reagan
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