Naked Capitalism has the article Wolf Richter: Subprime Spikes Auto Sales, Delinquencies Soar, Industry in Total Denial, Fallout to Hit Main Street.
These aren’t just a few individual cases, but much of the hollowed-out, over-indebted, underpaid middle class, the new American proletariat, the 62% of the population that has no emergency savings to cover a $500 car repair or medical bill. These households face, as the Federal Reserve said last year, “large-scale financial strain.” They’ve been bypassed by the Fed’s “wealth effect.” And with tighter lending standards, many of these folks won’t be able to buy a new car.
If you are one of those people who may now be under water in your car loan, don’t say you haven’t be warned. Not there there is much you can do about it now. And not that you will be reading this blog post. However, the rest of us should take heed. Even if your finances are in perfectly good shape, you should remember that the collapse of 2009 affected us all. I wouldn’t be taking any expensive vacations to Florida right now. Oops.