Another canary dies in the Biden economy. Things are about to get a lot worse. (Obama, solution)
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"Young consumers who have managed to purchase cars aren’t having an easy time paying off their loans, according to data from credit reporting agency TransUnion. Gen Z and millennial borrowers are now dealing with higher auto loan delinquency rates than before the pandemic."
"The good times of easy credit seem to be coming to a close as subprime borrowers are increasingly falling behind on payments. That scary trend is happening on debts ranging from credit cars to vehicle loans. Car loan defaults hit 8.8 percent in February, a 15-year high, according to Equifax."
Sub prime means the borrower has less than ideal credit and tend to be younger and want what they want when they want it.
The lenders are typically not household names and work closely with dealers. The know with reasonable certainty many sub prime borrowers will default. The business model is such that lenders tend to profit even when they repossess the auto.
The subprime auto delinquency rates are RETURNING to NORMAL after being artificially temporarily reduced by stimulus $ in 2020-21.
Things will start to improve when our strength shifts to manufacturing again, producing products that are sold all over the world, bringing money into the country. That, coupled with finding leadership that doesn't simply trade lies for a vote, will start moving us back in the right direction. We've got the resources and the intellectual capital, but our current priorities are chasing the societal ills caused by "them" (pick any them on the other side) while the whole country is hemorrhaging financially.
^ ship sailed decades ago.
The US is the second largest global manufacturer, despite having 1.1 billion fewer people than China.
The US does not have the human or natural resources to reclaim the top spot. China has been losing market share to Vietnam, Bangladesh and India for clothing and leather goods because labor is cheaper. Imagine Indonesia will follow. No way the world is going to pay a premium for Made in the US, when the same thing can be imported from Asia for less.
Nearly every commercial product ( apparel, leather goods, jewelry, home goods, furniture, etc) sold by Trump Org was made anywhere but the USA. This includes the crap Don Jr currently sells on his web page. Why is this?
Trump and Pence made a huge deal out of Carrier back in 2017 when they intended to close a plant and transfer manufacturing some some products to Mexico. Once the hoopla died down, Carrier moved as planned. The typical Carrier plant worker was low skilled and made $25+/ hr, plus benefits and pension. Similar work could be performed in Mexico for $5-5/ hr, moderate benefits and no pension.
I agree completely. I'm 33, but I hate the mindset most of my fellow Millennials have, and despise Gen Z's mindset even more. There's something to be said when a generation is foaming at the mouth trying to justify how having an Only Fans is no different than the guy working in construction 5 days a week. Or how sex work in general needs to be respected and recognized that it's a "9-5."
I have zero sympathy. Zip, nada, none… Time to burn it all down for everyone and start over.
No, it is time to stop treating everyone like babies. It is time to start giving everyone a dose of reality. Young people want the fancy car and a house as nice and mom and dad’s for their first home. I see it all the time, young people over extending themselves. It’s time people started making wiser decisions with their finances. I have sacrificed a lot to not be in crazy debt. That meant selling my first home and moving into an apartment to save money. Cheap cell phone service. Cheap phones. No cable. Very little partying (booze and food cost too much). Instead of going out paying more on the credit card etc etc.
People are weak today compared to how they used to be. Time to toughen up.
Sub prime means the borrower has less than ideal credit and tend to be younger and want what they want when they want it.
The lenders are typically not household names and work closely with dealers. The know with reasonable certainty many sub prime borrowers will default. The business model is such that lenders tend to profit even when they repossess the auto.
The subprime auto delinquency rates are RETURNING to NORMAL after being artificially temporarily reduced by stimulus $ in 2020-21.
isn't the answer to having to pay a sub-prime interest rate was to build up your credit history, and have an excellent credit rating? for that the person has to have patience to build up that.. pay bills on time, etc.
the people "suffering" maybe have not taken the road to that, because it takes patience and denial of instant gratification.
Also, buying a basic car without all the popular gadgets and things like heated seats, etc.
A lot of the issues with cars are young people buying the wrong thing. They couldn't possibly be satisfied with a new Toyota Corolla that costs in the low $20k range, is reliable, is not expensive to maintain, and gets good gas mileage. They have to buy something with prestige, like an Audi, or a BMW, and such., Or, they spend a ton of money on a pickup that costs $50k or more. They then trade in the vehicle after 3 years, roll the upside down amount into the new loan, and start over.
I've always bought a car I can afford, not one that the marketing people say I should buy. There are lots of smaller, less expensive cars out there. Kia, Hyundai, Nissan, etc. Buy one, pay it off, and drive it until it falls apart, all while saving the equivalent of a car payment after it's paid off.
So young people are having a hard time paying off their car loans, and you blame that on "failed leadership from Democrats"? What exactly do you think Democrats SHOULD be doing to help these 'subprime' borrowers? What would republicans being doing, if they were in power, that would prevent this situation?
It's easy to stand around and say "this is bad; that is bad". Unless you have some proposed solution, what is your point (other than to get your jollies out of other people's misery)?
Remake the school systems. They have and are failing students. Everyone gets a trophy and life should be easy are the messages kids hear these days. It wasn’t all that long ago that people worked to actually put food on the table and that was most of their existence. People are not grateful for how good they really have it. You know, it’s okay not to buy all those fancy new things when you are starting out in life. You know, it’s okay not to have your first home be as nice as the one mom and dad have worked towards all their lives. Oh no, must have everything now and “I deserve it” is the mentality of today and that is pushed by the democrats and the left.
Inflation affects ALL of us. They will have to start cutting back. Trade in that car for a used one.
These snowflakes are going to have to learn new words such as "frugal", "budgeting" and "second p/t job".
Oh, and cut out the frappe lattes at Starbucks.
It wasn't all unicorns and lollipops in the 70-80's. I had a job and a p/t job and no car.
You and me, both in the 70- early 80’s. Also went to school on my employer’s dime. No social media / gaming to distract me.
If someone had told me that one day, people would pay $5-6 for a fancy coffee drink or camp out overnight to buy the latest/ greatest phone for $1000+, I would not have believed them.
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So young people are having a hard time paying off their car loans, and you blame that on "failed leadership from Democrats"? What exactly do you think Democrats SHOULD be doing to help these 'subprime' borrowers? What would republicans being doing, if they were in power, that would prevent this situation?
It's easy to stand around and say "this is bad; that is bad". Unless you have some proposed solution, what is your point (other than to get your jollies out of other people's misery)?
Partisans have made blame throwing a national sport.
I have never attributed or blamed a POTUS or party for the good, bad and ugly in my own life. I own it.
I see this attitude from the left more and more. "Well, what would you do?" At first I took this to be a sarcastic way of putting the right down. I'm starting to sense a bit of desperation in those pleas as it changes to: Seriously, what would you do? We have no idea.
My answer is: We didn't break it and we are in no position to fix it. Step out of the way and let us show you.
People, like the country, choose to live beyond their means.
The US has been debt free exactly one year, 1835. Every POTUS/ Congress inherits debt, adds to it and kicks the can.
For the past 29 years, every POTUS ( Clinton, Bush 2, Obama and Trump) began with a Congress majority and then lost it. Can’t imagine history will not repeat itself with the mid terms.
It’s also possible we have entered into an era of one term presidents.
Too bad there is no viable third party for normies. Let the partisan extremists have the 2 major parties.
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