Great economy under Trump? the facts about car payments deliquencies in America (2-12-2019)

https://www.washingtonpost.com/business/2019/02/12/record-million-americans-are-months-behind-their-car-payments-red-flag-economy/?utm_term=.68732bbe1213

"A record 7 million Americans are 90 days or more behind on their auto loan payments, the Federal Reserve Bank of New York reported Tuesday, even more than during the wake of the financial crisis.

Economists warn that this is a red flag. Despite the strong economy and low unemployment rate, many Americans are struggling to pay their bills."

7,000,000 citizens cant afford to make payments of their automobile and we are in a "great economy). The facts belie what the President is telling us on a daily basis. How can you not afford a car payment while you are gainfully employed at a good paying job?

Allan

Man, I wonder what happens when we take the next downturn.

When combined with higher prices for new automobiles built in the US from the Trump tariffs, this could really leave a mark.

Wages nees to go up…10 or 12 an hour dont cut it

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How is the economy so great if Obamacare is still the law of the land?

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This isnt possible. People got an extra $700 tax cut they should be buying houses

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Hey…I respect the people on these boards who have pretty much admitted they supported the tax cuts because it benefitted them personally.

We should be applauding such honesty.

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And then there’s this today. Worst retail sales drop in nine years.

https://www.marketwatch.com/story/stock-market-futures-turn-negative-after-worst-plunge-in-nine-years-for-retail-sales-raises-specter-of-recession-2019-02-14

Beat me to it. Combined with a drop in the Producer Price Index as well [1]. It’ll be interesting to see what the ATL Fed shows in their updated GDP estimate.

  1. https://www.bls.gov/news.release/ppi.nr0.htm
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They’re supposed to do an update today.

Yeah, my guess is a drop in the PCE of 0.15 and a drop in the change in private inventories by 0.05. So back down to 2.5.

Wait - Trump promised me he was going to replace Obamacare with a plan that would cover everyone on day 1. Does this mean he didn’t do that as promised? Where’s his new plan?

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Another example of too many Americans failing to examine the personal responsibility component when purchasing a vehicle they know they can’t afford. The promotion of the victim role is highly effective. Blame something or someone else for a poor emotion based financial decesion. Today there is the added bonus of tying it to Trump.

Repo man gonna be busy.

Why now, all of a sudden, do we have a RECORD number of people delinquent on their car payments?

It’s not all of a sudden.

We break records year after year.

We have a huge problem with consumer debt mismanagement in this society. We have for a long time. The collective amount of consumer debt has been nearly as large as the federal debt since before many on this boards were born.

Likewise municipal debt.

To be blunt, I’m surprised the house of cards hasn’t collapsed already. But the higher we build it, the more painful will be the collapse.

Remember that at least one quarter’s rosy numbers earlier this year was inflated at least 1% by a spurt in soybean exports in advance of tariffs being imposed. Both the short term gain and the resulting drop are artifacts of Trump’s trade war.

It’s actually very surprising to me the economy hasn’t crashed yet. It’s super unstable, with record high gains and record high losses terrifyingly frequently, not to mention a commander in chief who has literally no idea what he’s doing.

I don’t know what the trigger will be but when the big drop comes, buckle up.

This has NOTHING to do with consumer debt mismanagement and everything to do with the state of the economy.

we set the previous record during the 3rd quarter of 2008 during the recession.

People will go out of their way to make their car payment,

That a record 7,000,000 can not speaks volumes about the economy.

that why economists state this is a red flag.

Allan

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The economy is going south and you are blaming the people mismanaging their finances.

Obviously the people are not making enough money.

Back in 2010. they were and car delinquencies were lower.

Allan