Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
We are at full employment. 5 to 6% growth might be inflationary if the wealthy powers that be don't start packing planes from Bangalore again to depress wages.
But auto loan delinquencies were only at this level recently in like 08 I believe--
So while people with more income can often afford to buy cars outright or maybe prefer to lease car it just seems a little bit of a red flag...
Right but there could be other factors at play, like current interest rates being much lower allowing more people to jump into cars than in previous generations and a drop in lending standards.
Either way I think it's a big simplistic to frame it as an indicator that an economy isn't healthy, why not ask yourself why there are more defaults right now? If it is because people don't have work that would be reflected in jobs data, if it's inflation it would be in CPI, if people just couldn't pay their bills then overall credit card defaults would probably be troubling as well.
Right but there could be other factors at play, like current interest rates being much lower allowing more people to jump into cars than in previous generations and a drop in lending standards.
Either way I think it's a big simplistic to frame it as an indicator that an economy isn't healthy, why not ask yourself why there are more defaults right now? If it is because people don't have work that would be reflected in jobs data, if it's inflation it would be in CPI, if people just couldn't pay their bills then overall credit card defaults would probably be troubling as well.
Yes--I see your point
Any way to tell where in US those auto loan defaults are coming from?
Maybe it is just result of people who are in contention with their insurance companies over claims from hurricanes or other flooding events--
There has been lot of bad weather events in certain parts of the country resulting in flooding and fires with good deal of property damage
i have my doubts the tax changes would do anything but make company officer's offshore bank accounts larger.
-companies already use creative tax saving strategies
-smaller companies either under report or run all cash businesses
-extra money is used to repurchase stock, pay higher bonuses and almost never increase minimum wages
-with manufacturing offshore, any stimulus to inventory creation only helps other countries
I am a demand side economist. Supply side economics (trickle down) has been proven many times over to have no effect on the economy.
I agree with you---trickle down just goes in a wealthy man's pocket vs the economy at large..
Read article today that said many small businesses won't be able to get much of a break from this bill as bigger companies will--and people who are passive owners in small business--who basically only collects profit--will be hit harder because considered more of an investor...
I'm a tax attorney and for years have been pro-tax reform, but I'm not sold on this incarnation. It just adds WAY too much to the federal deficit, and I don't believe that the "dynamic scoring" is going to come to fruition. The end result is that we'll need to borrow another 1.5 trillion, and for what?
Some of the provisions are pro-business, I'll give them that. But without spending cuts, how can any entity (whether it be government, business, or even a family budget) voluntarily reduce its income? I hate taxes just as much as the next guy, but you solve that issue by addressing the SPENDING, not the taxing.
Taxes should flow from spending, and not the other way around. Want to cut taxes? Cut spending. And stop borrowing for routine annual budgets.
Borrowing cheap debt to buy back stock and raise share price--
That's how you earn that big bonus...
Right but there could be other factors at play, like current interest rates being much lower allowing more people to jump into cars than in previous generations and a drop in lending standards.
Either way I think it's a big simplistic to frame it as an indicator that an economy isn't healthy, why not ask yourself why there are more defaults right now? If it is because people don't have work that would be reflected in jobs data, if it's inflation it would be in CPI, if people just couldn't pay their bills then overall credit card defaults would probably be troubling as well.
Here's a Bloomberg article about the auto loan default rate:
It’s classic subprime: hasty loans, rapid defaults, and, at times, outright fraud.
Only this isn’t the U.S. housing market circa 2007. It’s the U.S. auto industry circa 2017.
A decade after the mortgage debacle, the financial industry has embraced another type of subprime debt: auto loans. And, like last time, the risks are spreading as they’re bundled into securities for investors worldwide. Subprime car loans have been around for ages, and no one is suggesting they’ll unleash the next crisis. But since the Great Recession, business has exploded. In 2009, $2.5 billion of new subprime auto bonds were sold. In 2016, $26 billion were, topping average pre-crisis levels, according to Wells Fargo & Co.
Economic growth is one thing. How the benefits of that growth are distributed is something else. But, in the main, there is no empirical evidence to show that large tax cuts in low tax countries, like the US, greatly stimulate economic growth. What they do is to increase the net incomes of the tax payers in the highest bracket.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
