Record 7 million are 3 months behind on their car payments

Discussion in 'Economics' started by jeb9999, Feb 13, 2019.

  1. schweiz


    If you do that in Dubai they put you in prison.

    #11     Feb 13, 2019
  2. tiddlywinks


    You do know National debt and Consumer debt are not the same thing, right?
    #12     Feb 13, 2019
    Stockolio likes this.
  3. vanzandt


    #13     Feb 13, 2019
  4. Buy1Sell2


    My guess is that we also have a record number of car loans now due to the strong economy. I'll not look at this silly thread again.
    #14     Feb 13, 2019
    TreeFrogTrader likes this.
  5. schweiz


    Where I live the stronger the economy the more people pay cash and reduce loans. But we don't live in a creditcard economy...
    These 7 million buyers bought something they could not afford.
    The crash in housing prices in the US had the same cause: buyers bought something they could not afford, or made it unaffordable because they took extra loans.
    Last edited: Feb 13, 2019
    #15     Feb 13, 2019
    wrbtrader likes this.
  6. speedo


    It always cycles like this. Good economy, underwriting loosens, paper performance drops. Meanwhile the paper is securitized and sold into pension funds etc., ratings drop, economy weakens, underwriting tightens and so on.
    #16     Feb 13, 2019
    dealmaker likes this.
  7. wrbtrader


    With low unemployment and record people behind on their car payments (on the verge of reposession)...

    Its just a sign that people still living "beyond" their pay check and record number of people living from pay chech to pay check.

    #17     Feb 13, 2019
    LS1Z28 likes this.
  8. %%
    NOT a big problem for lenders; they will sell repo cheap/fast + sue borrower for balance.:cool::cool:
    #18     Feb 13, 2019
  9. tiddlywinks


    Good economy lifts all boats even though some captains may not know how to swim.
    #19     Feb 13, 2019
    comagnum likes this.
  10. speedo


    Repo's are typically "under water" and a worthless judgement doesn't help. Most end up in a chargeoff.
    #20     Feb 13, 2019
    murray t turtle likes this.