Some of you will read the title of this post and wonder why I chose to cover this in light of all the other things happening in the world. While the rapidly growing subprime auto market might seem unimportant on a relative basis, I think it’s very significant as a microcosm of the many failures within the U. S. economy since the financial crisis, during which oligarchs were bailed out and the rest of the nation was left hung out to dry.
I best summarized how disturbing current trends in the U. S. economy are in the post, Land of the Debt Serf – How ‘Auto Title Loan’ Companies are Ruthlessly Preying on America’s Growing Underclass. With regard to trend toward debt serfdom, I noted:
Think about how troubling this is for a second. In the run-up to the last crisis, Americans borrowed on their home equity and used the proceeds to remodel kitchens, etc. Now these same Americans are so completely broke, the only asset they can borrow against is their cars, and they are desperately using the money to purchase groceries, pay cable bills, etc. Thank you Ben Bernanke.;
This post was published at Liberty Blitzkrieg on Jul 21, 2015.