Which companies should one short during the upcoming bursting of the car loan bubble?
I could be wrong, but aren't car loans always given using the car as collateral ?
So unless millions of people default on the car loan and destroy the cars, I don't see how this is a bubble in the first place.
It is the same as the subprime mortgage crisis, except it is now cars
there is a car loan bubble
there is another mortgage bubble
there is a bubble in sovereign debt around the world (lol $1.3 Trillion is a budget?)
the stock market is in a bubble
financial instruments and institutions are in a bubble
This bubble is not localized but worldwide
And you are wondering what stocks to short?
Kid where we're going we won't need any "stocks"
The big players (ally, Wells Fargo) don't make the predatory loans - the pink sheet companies are the ones that are doing this. And there's not a lot of profit to be had in shorting a $2 stock with <100 million market cap. And these are the companies that own tge lots too and repo the same car 10 times and sell it after each borrower defaults so there isn't a lot of risk as the price of the car does not significantly depreciate in the time frame were talking about.
You know, I see an awful lot of fucking car commercials, but don't know anyone who's buying cars. The price of a car is like a year's salary millennials these days.
I hate that they're a de facto requirement of life in America; need a car to take you to your job that pays for your car.
>housing price gouges the shit out of us because they know we need housing and have to pay for it no matter what
>healthcare price gouges the shit out of us because they know we need healthcare and have to pay for it no matter what
>universities price gouge the shit out of us because they know we need a bachelor's degree for a job and will pay for it no matter what
>telecom monopolies price gouge the shit out of us because they know we need internet and have to pay for it no matter what
>car companies price gouge the shit out of us because they know we need cars to get to work and have to pay for it no matter what
>can't raise wages because that's literally communism
>financial markets being surprised that we have to take on a lifetime of debt just to do fucking anything in life
>financial markets being surprised that this whole system they created is a house of cards ready to collapse at any moment