Americans are having to pay more to get less.
Investors in subprime auto-loan Asset Backed Securities should be genuflecting in front of US taxpayers to thank them for the backdoor bailout.
But it’s a lot worse than it appears.
Americans love big expensive equipment. And cheap cars have fizzled. Ford, which threw in the towel on its cheapest cars, is trying again.
This change in the inflation mindset is likely not “temporary.”
Are Americans finally figuring it out as they’re paying down their credit cards by record amounts? So far, $25 billion a year in lost interest income for the banks!
Forbearance Effect: Serious delinquencies of mortgages & student loans plunge to record lows because delinquent loans in forbearance don’t count as delinquent.
And there are some whoppers.
This is just freaking nuts. It explains the record trade deficits, bottlenecks, shortages, and inflation pressures, among other distortions.
They’re not taking mass transit, that’s for sure.