Home › Forums › Financial Markets/Economics › Auto credit bubble?
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December 30, 2007 at 10:59 AM #11356December 30, 2007 at 12:18 PM #126448
Allan from Fallbrook
Participantcontrarian: You can drive through neighborhoods in Temecula and Murrieta that are solidly middle class, and see Mercedes C and E class cars parked right alongside Yukon Denalis, Caddie Escalades and Hummer H2s. You’re talking about $100k plus worth of vehicles, and this doesn’t count the jet skis, boats, RVs, etc that these families “own”.
The more astute posters here have pointed out that this is not a housing bubble, so much as it is a credit bubble, and the LA Times article points that out. We are addicted to debt, whether it’s in the form of exotic mortgages, car loans, or commercial credit. We threw ourselves one hell of a party, and the bill is about to come due with a vengeance.
December 30, 2007 at 12:18 PM #126606Allan from Fallbrook
Participantcontrarian: You can drive through neighborhoods in Temecula and Murrieta that are solidly middle class, and see Mercedes C and E class cars parked right alongside Yukon Denalis, Caddie Escalades and Hummer H2s. You’re talking about $100k plus worth of vehicles, and this doesn’t count the jet skis, boats, RVs, etc that these families “own”.
The more astute posters here have pointed out that this is not a housing bubble, so much as it is a credit bubble, and the LA Times article points that out. We are addicted to debt, whether it’s in the form of exotic mortgages, car loans, or commercial credit. We threw ourselves one hell of a party, and the bill is about to come due with a vengeance.
December 30, 2007 at 12:18 PM #126709Allan from Fallbrook
Participantcontrarian: You can drive through neighborhoods in Temecula and Murrieta that are solidly middle class, and see Mercedes C and E class cars parked right alongside Yukon Denalis, Caddie Escalades and Hummer H2s. You’re talking about $100k plus worth of vehicles, and this doesn’t count the jet skis, boats, RVs, etc that these families “own”.
The more astute posters here have pointed out that this is not a housing bubble, so much as it is a credit bubble, and the LA Times article points that out. We are addicted to debt, whether it’s in the form of exotic mortgages, car loans, or commercial credit. We threw ourselves one hell of a party, and the bill is about to come due with a vengeance.
December 30, 2007 at 12:18 PM #126617Allan from Fallbrook
Participantcontrarian: You can drive through neighborhoods in Temecula and Murrieta that are solidly middle class, and see Mercedes C and E class cars parked right alongside Yukon Denalis, Caddie Escalades and Hummer H2s. You’re talking about $100k plus worth of vehicles, and this doesn’t count the jet skis, boats, RVs, etc that these families “own”.
The more astute posters here have pointed out that this is not a housing bubble, so much as it is a credit bubble, and the LA Times article points that out. We are addicted to debt, whether it’s in the form of exotic mortgages, car loans, or commercial credit. We threw ourselves one hell of a party, and the bill is about to come due with a vengeance.
December 30, 2007 at 12:18 PM #126684Allan from Fallbrook
Participantcontrarian: You can drive through neighborhoods in Temecula and Murrieta that are solidly middle class, and see Mercedes C and E class cars parked right alongside Yukon Denalis, Caddie Escalades and Hummer H2s. You’re talking about $100k plus worth of vehicles, and this doesn’t count the jet skis, boats, RVs, etc that these families “own”.
The more astute posters here have pointed out that this is not a housing bubble, so much as it is a credit bubble, and the LA Times article points that out. We are addicted to debt, whether it’s in the form of exotic mortgages, car loans, or commercial credit. We threw ourselves one hell of a party, and the bill is about to come due with a vengeance.
December 30, 2007 at 1:02 PM #126719I would rather be lucky then smart
ParticipantWho doesn’t know somebody that was never upside down in their car?
This has been going on forever and doesn’t matter whether the loan is for 12 months or 84 months.
The only way to avoid it is to pay cash, put a huge amount down or lease a car that you can walk away from at the end of the term-or-purchase one that goes up in value rather then down.
The last scenario is pretty improbable.
December 30, 2007 at 1:02 PM #126694I would rather be lucky then smart
ParticipantWho doesn’t know somebody that was never upside down in their car?
This has been going on forever and doesn’t matter whether the loan is for 12 months or 84 months.
The only way to avoid it is to pay cash, put a huge amount down or lease a car that you can walk away from at the end of the term-or-purchase one that goes up in value rather then down.
The last scenario is pretty improbable.
December 30, 2007 at 1:02 PM #126627I would rather be lucky then smart
ParticipantWho doesn’t know somebody that was never upside down in their car?
This has been going on forever and doesn’t matter whether the loan is for 12 months or 84 months.
The only way to avoid it is to pay cash, put a huge amount down or lease a car that you can walk away from at the end of the term-or-purchase one that goes up in value rather then down.
The last scenario is pretty improbable.
December 30, 2007 at 1:02 PM #126616I would rather be lucky then smart
ParticipantWho doesn’t know somebody that was never upside down in their car?
This has been going on forever and doesn’t matter whether the loan is for 12 months or 84 months.
The only way to avoid it is to pay cash, put a huge amount down or lease a car that you can walk away from at the end of the term-or-purchase one that goes up in value rather then down.
The last scenario is pretty improbable.
December 30, 2007 at 1:02 PM #126457I would rather be lucky then smart
ParticipantWho doesn’t know somebody that was never upside down in their car?
This has been going on forever and doesn’t matter whether the loan is for 12 months or 84 months.
The only way to avoid it is to pay cash, put a huge amount down or lease a car that you can walk away from at the end of the term-or-purchase one that goes up in value rather then down.
The last scenario is pretty improbable.
December 31, 2007 at 12:31 AM #126668Coronita
ParticipantThere was an article awhile ago in the LA Times about people burning their cars because of the high cost of gas and being upside-down in their car payments. I'll try to dig it up. It has some pretty sobering stats.
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
December 31, 2007 at 12:31 AM #126826Coronita
ParticipantThere was an article awhile ago in the LA Times about people burning their cars because of the high cost of gas and being upside-down in their car payments. I'll try to dig it up. It has some pretty sobering stats.
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
December 31, 2007 at 12:31 AM #126838Coronita
ParticipantThere was an article awhile ago in the LA Times about people burning their cars because of the high cost of gas and being upside-down in their car payments. I'll try to dig it up. It has some pretty sobering stats.
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
December 31, 2007 at 12:31 AM #126905Coronita
ParticipantThere was an article awhile ago in the LA Times about people burning their cars because of the high cost of gas and being upside-down in their car payments. I'll try to dig it up. It has some pretty sobering stats.
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
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