This was on the 'housing not bubbling' thread here on 12/31. http://elitetrader.com/vb/showthread.php?s=&threadid=68853&perpage=10&pagenumber=5 Very true...and due to the bubble popping in progress, millions have/will have negative net worth. Like this guy... "About eight weeks ago one of our laborers asked our field technician for a ride to the Ford dealer in the next town. Apparently his 3-yr/old pick-up truck was in for some expensive repair work. The field technician said that the work wasnât covered by warranty, and the laborerâs two credit cards were refused at the service counter after being swiped into the scanner. Solution? The laborer walked over to the sales floor and bought a Lincoln Navigator! No $hit, just like that, and the pick-up truckâs $30k loan was rolled onto the back end of the new loan just like magic." OWP
This has been going on for 20+ years. In the biz it's called being upside down on your trade. They just roll the balance due into the new car. Common practice for many years. Not that it's smart, just nothing new. Just some lazy reporter rehashing old news.
off topic but slightly related : notice how fat those two are? vanity, greed, sloth and gluttony all rolled into one in this article.