georgephillip
Diamond Member
Mike Whitney writing on CounterPunch was among the few observers on the left or right side of the political dial to warn about an impending sub-prime mortgage crash that finally hit five years ago.
Mike has currently spotted a similar pattern of corporate deceit in today's "surging auto market"
"Rates are low, credit is easy, underwriting is shoddy, and sales are booming.
Theres your thumbnail sketch of todays 'surging' auto market.
"Its a carbon copy of the subprime mortgage fiasco that plunged the economy into recession 5 years ago.
"Now the same nightmare is unfolding in Cartopia, the emerging credit Shangri-la where anyone who can transport himself onto a carlot in an upright position can drive away in a shiny new vehicle no-strings-attached.
"But how can this be happening, you ask?
"Didnt the US Congress pass strict new regulations, like Dodd-Frank, to prevent the banks and finance companies from lending billions of dollars to borrowers who dont have the ability to repay the debt?
"Not exactly.
"The fact is, the powerful auto lobby snuck in a neat little provision that exempted them from those nitpicky rules.
"Heres a little background from Slates Matthew Yglesias..."
Easy Lending to Risky Borrowers Makes a Comeback » CounterPunch: Tells the Facts, Names the Names
Maybe we should take a poll about whether this next bankster bubble should burst in November of 2014 or November 2016? Certainly elected Republicans AND Democrats will throw Main Street under the bus again in order to serve Wall Street's Masters of Mankind.
Mike has currently spotted a similar pattern of corporate deceit in today's "surging auto market"
"Rates are low, credit is easy, underwriting is shoddy, and sales are booming.
Theres your thumbnail sketch of todays 'surging' auto market.
"Its a carbon copy of the subprime mortgage fiasco that plunged the economy into recession 5 years ago.
"Now the same nightmare is unfolding in Cartopia, the emerging credit Shangri-la where anyone who can transport himself onto a carlot in an upright position can drive away in a shiny new vehicle no-strings-attached.
"But how can this be happening, you ask?
"Didnt the US Congress pass strict new regulations, like Dodd-Frank, to prevent the banks and finance companies from lending billions of dollars to borrowers who dont have the ability to repay the debt?
"Not exactly.
"The fact is, the powerful auto lobby snuck in a neat little provision that exempted them from those nitpicky rules.
"Heres a little background from Slates Matthew Yglesias..."
Easy Lending to Risky Borrowers Makes a Comeback » CounterPunch: Tells the Facts, Names the Names
Maybe we should take a poll about whether this next bankster bubble should burst in November of 2014 or November 2016? Certainly elected Republicans AND Democrats will throw Main Street under the bus again in order to serve Wall Street's Masters of Mankind.