tag:blogger.com,1999:blog-1527840491496268397.post7139513808093918835..comments2024-03-08T11:20:30.095-07:00Comments on Credit Bubble Stocks: Important Stagflationary Mark Post - 10 Year Yield To Fed Funds Rate RatioUnknownnoreply@blogger.comBlogger6125tag:blogger.com,1999:blog-1527840491496268397.post-7183907829409296162019-06-05T14:45:37.997-07:002019-06-05T14:45:37.997-07:00This normalized! Inverted yield curve!
Just had ...This normalized! Inverted yield curve! <br /><br />Just had to be patient...CPhttps://www.blogger.com/profile/12701174164478027499noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-43551177440611572342014-04-08T08:35:49.275-07:002014-04-08T08:35:49.275-07:00Didn't experience show people make their car p...<i>Didn't experience show people make their car payments before their house payments? They need their car to go to work. And they can sleep in it after.</i><br /><br />In 2002-03 a lot of subprime auto lenders went bust or came close to it. Americredit was trading under a dollar for a while. There may be pragmatic reasons for people to prioritize paying back their auto loans, but historically a lot of them haven't. <br /><br />The housing bubble was unique in that the excesses were much worse in mortgage lending than in other types of consumer credit. Given that, it's unsurprising that car loans fared better than housing loans, but that's an artifact of the housing bubble and doesn't mean that auto loans are intrinsically safer.Jameshttp://y0ungmoney.blogspot.com/noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-55366840906714379612014-04-08T02:40:46.397-07:002014-04-08T02:40:46.397-07:00James and eah,
...when these loans go bad, they w...James and eah,<br /><br /><i>...when these loans go bad, they will really go bad.</i><br /><br /><i>They need their car to go to work.</i><br /><br />I'm just not sure how much longer we can grow restaurant jobs at a <a href="http://illusionofprosperity.blogspot.com/2014/04/restaurant-employment-growth-has-peaked.html" rel="nofollow">3.6% annual pace</a>. It doesn't seem even remotely sustainable over the long-term to me. :(Stagflationary Markhttps://www.blogger.com/profile/04568993350246477976noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-43652563947587577422014-04-08T01:39:23.513-07:002014-04-08T01:39:23.513-07:00Didn't experience show people make their car p...Didn't experience show people make their car payments before their house payments? They need their car to go to work. And they can sleep in it after.eahnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-69685914225570065592014-04-07T20:01:35.464-07:002014-04-07T20:01:35.464-07:00Seriously. They are well into "fog a mirror&q...<i>Seriously. They are well into "fog a mirror" land again, only this time it is cars.</i><br /><br />I've read that auto loans typically have LTVs above 100%, with LTVs being particularly high for used cars. That's amazing for a depreciating asset-- when these loans go bad, they will really go bad.Jameshttps://www.blogger.com/profile/06597727760854955867noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-44559299781731200552014-04-07T17:58:02.309-07:002014-04-07T17:58:02.309-07:00Commercial banks sure are bracing for that rising ...Commercial banks sure are bracing for that rising interest rate environment though. Not!<br /><br />Check out the <a href="http://illusionofprosperity.blogspot.com/2014/04/rising-interest-rates-autoimmune-disease.html" rel="nofollow">48 month new car loans</a>.<br /><br />Seriously. They are well into "fog a mirror" land again, only this time it is cars.Stagflationary Markhttps://www.blogger.com/profile/04568993350246477976noreply@blogger.com