A lot of people accuse me of crying wolf over the years, even though when I hosted a radio show and was a lot more active online, I nailed the housing crisis in its early days.
Fast forward to this era and yes, there is another housing crash approaching (more on that later). However, the credit crash will initially be noticed in Commercial Real Estate and then at the consumer level, the automotive new and used car sales level.
In fact this crash will be much more epic and redefine how automotive financing is conducted. In my opinion, the credit system slamming into the wall might indeed require the government to intervene and provide long term low cost financing to purchase their new unicorn driven electric car Fantasyland, but that’s a discussion for another time.
Watch this video and please tell me how people can afford a housing payment which is 30% higher (rent or own), a car payment which is insane, and health insurance/health care costs increasing at obscene rates along with everything else.
His logic is impeccable.
Look at the graphic be low from Cox Automotive from his video and reflect on the warnings he issued in the video above.
No amount of Fedspeak or welfare promises will bail out the auto industry or the auto financing industry unless the government creates a program to fund lower and middle class individuals who wish or need to purchase a vehicle.
Just imagine all of the awesome conditions and restrictions imposed on one of those loans…
For damn sure I have been wondering for over a year how people can afford $700 a month car payments in the first place. I had no idea they are paying a thousand and up every month.
Rent/ mortgage payments are already insane and then throw in insurance, cell phones, cable/ internet etc. and it doesn’t surprise me one bit that nobody can really afford any of it.
For crying out loud, we are paying $250 a month just for cable/ internet!
That used to be low end car payment territory.
I have been watching prices on old classic pickups for the last two years and it has also gone completely insane.
$5000 MINIMUM for a mid 70’s pickup that isn’t rusted clear away.
Oh, you want one that runs and drives?
$7-$10K, THEN you get to restore it.
It’s freaking STRAIGHT JACKET Territory!
I also agree that the Commercial Real Estate market is going to take the whole show down, again.
I saw well over a year ago that there were significant signs of distress there because, who woulda thunk it, they basically pulled the same crap there that they did in the run up to the housing crash and here we are again.
This, on top of everything else and I only see complete destruction of the entire Western economic system coming.
It’s all connected and it’s all rotten to the core.
Buckle up. A lot of the people who act “cool” driving BMW’s with $1700 per month payments, $400 per month insurance, and are “in” just happen to invest in real estate be it commercial or residential.
The easiest path to becoming a millionaire in 2024?
Buy a hook, become a repo man. It’s easy money until the .gov nationalizes car ownership.
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