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…
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