patrick.net

This is the debt-slave, lower jobs as % of population, debt/credit reflation & deflation bust bubble-to-bubble economy that has been created since the late 70s/early 80s, which accelerated in the 90s and 2000s, that replaced the former steadier economy and far less debt/credit-based economy that existed before NAFTA, GATT, China's most-favored-nation trade status, and The Gramm–Leach–Bliley Act (GLBA), also known as the Financial Services Modernization Act of 1999, which all served to chip away at the middle/working class, concentrate wealth further into the hands of the multinationals and those have paper/financial assets, and supporting a FIRE economy while real wages and productivity drops for the bulk of the American Population.

90% of America lives paycheck-to-paycheck now, as debt slaves, on a "what's my monthly payment on that depreciating asset/item?" basis, while digging themselves further and further into perpetual debt serfdom, as they try to buy into a marketed lifestyle that their pay can't keep up with.

Two thoughts...

a.) No damn bailouts this time

b.) Those of us that live responsibly within our means without debt, we are the real losers.

BayArea says

a.) No damn bailouts this time

But that's what voters demand or they would have stopped it at TBTF.
All the big banks names should have been placed in a hat & drawn ,one at a time, & had their asses kicked into receivership by the FDIC.
DIE STOCKHOLDERS!

ASSHOLES is too complimentary.

This article is falloff shit. There is no auto loan crisis.

Buy a Nissan Armada, turn it into a rolling crackhouse and hoehouse and consider it an all cash IRS proof business loan.

Ironman says

Strategist says

There is no auto loan crisis.

You might be wrong.

Unpaid subprime car loans hit 20-year high

I'm sure that's true, but was it a crisis 20 years ago? It's quite a bit different from defaulting on homes. The impact of mass car loan defaults on the economy is limited.

Ironman says

Strategist says

The impact of mass car loan defaults on the economy is limited.

On the car loan by itself, OK...

But if you're not paying your car loan, you have other financial issues too, like I mentioned above, the car payment is the last hold out when you've already defaulted on your home, school loans and credit card debt. So, in aggregate, when car loan defaults start going up, there's a lot of dark clouds with the overall economy.

I would agree. No one wants to lose their car, because they need it to get to work.
Hey Ironman, come over and have a Johnny Walker with me. I'm in the patio with my dog, overlooking a spectacular view. The temperature is a perfect 72. All pat netters are welcome.

HEY YOU says

auto lenders have become more and more aggressive, and they have been increasingly willing to lend money to people that should not be borrowing money to buy a new vehicle under any circumstances.

Last Saturday, Ed Wallace on Ed Wallace with Wheels was congratulating one of the dealers who advertises on his show how his dealership was $85 UNDER the amount a prospective buyer was willing to make in payments on a 72 MONTH loan and thus won the buyer's business. Of course, the car will be worn out in five years and worthless and he'll still be paying a bargain payment towards a new car. But don't worry, the unpaid amount will be wrapped into the price of his next car.

Homes/mortgages are next.

In fact, delinquencies on mortgages have already begun to increase.

AllTruth says

Homes/mortgages are next.

In fact, delinquencies on mortgages have already begun to increase.

I find that hard to believe.