Recession Part 2: Car Edition

We just really didn't learn our lesson from 08, did we?

marketwatch.com/story/could-subprime-auto-loans-lead-to-same-economic-catastrophe-as-risky-mortgages-2016-07-27

What should we deregulate next, republicans?

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youtube.com/watch?v=4U2eDJnwz_s
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Here's the difference, however:

Real estate and housing can be considered a stable or even appreciable asset. Cars, hands down, will no matter what, by literally ANYONE YOU TALK TO, be a depreciable asset. They lose value the moment you purchase them, they are literally vehicles of converting value into utility. There are no banks out there with the assumption that they can recover their money on any car loan if it were to default.

>deregulation makes people hand out subprime loans

Lefties are so retarded

If there aren't any rules on the books that say they can't, they will.
>Cut to three years down the line with this continued business practice
>JESUS CHRIST! How did 30 million people default on their loans?
>Everyone's in debt, and the used car market is collapsing!
>This is the left's fault, I just know it
We're literally doing it all over again.

>muh poor people can't afford a car

You'll never pass that regulation

this is beyond stupid. no one is buying a car, souping it up, and selling it for 10k more a month later. not the same fucking thing at all. get real you idiot fucking shitface

>Oh look, there are no more rules!
>I think I'll just loan out my capital to these people who probably won't be able to pay me back
>Boy oh boy, this sure is a good plan

The only reason subprime loans can exist at all is if taxpayers are forced - by regulation - to pay the bill when the loans fall through. If the people offering the credit absorbed their own losses, the loans would never be made.

The financial industry is one of the most heavily regulated in our economy, and that is precisely why it was the epicenter of the collapse. If we all paid for our own mistakes fewer mistakes would be made.

Remove the bailouts and watch it crumble. Loans should be a tool not a way to live.

Everyone in da hood has nice cars and I am 100% sure that's the lefts fault for subsidizing their bullshit and 10 kids.

Tie it to a bill that gives millions for publicly financed public transportation and I think you've got a fight on your hands
Cars get repossessed and sold dozens of times when people fail to make payments. Used car companies are literally flipping them
Nope! It's still just the disingenuous free market capitalist right taking advantage of the poor. Just like they always have. Right on schedule.

>If the people offering the credit absorbed their own losses, the loans would never be made.
Fixing this one single problem would prevent catastrophic crashes in the future. Life is ever changing, for better and worse, but for things to get worse across the board requires the power of Government.

Fuck off, you got that shit backwards. Regulations are forcing lenders to loan to very high risk borrowers. Namely minorities. Is that you Barney Frank? Didnt learn a lesson the last time it seems

>refusing loans to niggers is racist
>niggers buy cars they can't afford
>economy crashes

Debt just seems to be the American way of life. My best mate lives in Texas and has been there for about 7 years now, he has over 50k in debts, still rents, his truck is on finance and he has at least 5 credit cards.

I live in London normally (home for the weekend) I have two credit cards, only one of which I use that has £600 out £2000 credit on it, I have my own apartment with 200k on the mortgage remaining, I own my car outright and I manage to put away about half my earnings each month into saving and investments.

We're both 30 but I'd be fucking terrified having that much debt with so little to show for it.

>we finance now

Are the disingenuous free market capitalist right taking advantage by forcing them to have 10 kids who just happen to increase their welfare benefits, knocking them up right schedule?

youtube.com/watch?v=4U2eDJnwz_s

>Debt just seems to be the American way of life.
I'd like to argue with that, but it seems to be. People get sold the idea of effortless affluence through the media and want an unrealistic lifestyle and there are no shortage of unscrupulous lenders willing to help them go after it for short term gains.
God damn it, I laughed.

> no shortage of unscrupulous lenders willing to help them go after it for short term gains.

Pretty much this is at the core of it. The 50k of debt, about half of that has been accrued due to top up loans. Every Black Friday he is offered an option to top up his loan to spend during the sales and every time he goes for it.

I like electronics and cool stuff as much as the next guy but its terrible to become that indentured to it that you'll fuck yourself up for a few cheap deals.

/thread

OP you may want to look into the stuff pre 2008. Even faggots like John McCain were wanting to regulate and Frank said no. Then he got the bill named after him so morons like you would play along like good goys.

Are you trying to argue that dumb people having litters of kids is them trying to scam a free car for a month before it gets repossessed?

I'm saying a fool and his money are soon parted, and used car dealers are taking advantage of a bubble not unlike the one that caused the housing crisis because there are no laws that tell them they can't.

Why didn't Obama break up any of those too big to fail banks goy?

>Open used car lot
>Have in house financing
>Install GPS tracking on all cars
>Sell to nigger for hefty down payment + few months
>Nigger defaults
>Repo car because you have spare key and exact location
>Rinse repeat

>I'm saying a fool and his money are soon parted
That's the problem, it's not "his" money. There is no difference between the used car salesman and the welfare recipient in this case. They are both getting free money.

I help a few dealerships on the side with random work and this literally explains the business. You must make sure the trackers can make the car not start once a payment is missed though. That gives them a short chance to pay before repo.

That makes it worse. Now the tax payer is paying for a zero sum game. Without laws regulating predatory lenders we all collectively get fucked.

Are you getting it yet?