Debt unleashed again to ravage America: out of control auto lending
Summary: Let’s look at the small and large implications of the auto loan boom. It’s an example of our inability to learn, resulting in our credit-driven business cycles. Corporations profit from more sales and interest charges. People suffer from excessive debt burdens, and bankruptcies. Governments run deficits from the eventual busts. So it goes cycle after cycle since the New Deal era regulations were removed. Perhaps eventually we’ll learn, and a new era will begin.
- Auto lending
- Larger lessons
- For More Information
(1) Auto Lending
Madness is the failure of bankers and regulators to learn from the bankers’ imprudent greed that caused the housing bubble — and bust. With results we see today in auto lending.
… average automotive loan term reached an all-time high of 66 months … loans with terms 73-84 months grew to 25% of all loans originated during the quarter. …
The average amount financed…
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