[Deleted by author.]
When did you realize the entire global economy is reliant on r-slurs being r-slurred with money? 
- 144
- 131
Top Poster of the Day:
AverageTopPosterEnjoyer
Current Registered Users: 26,823
BROWSE EFFORTPOSTS
SITE GUIDE
HOLES
PING GROUPS
Live commit: 5f32edd
Jump in the discussion.
No email address required.
I've seen a few youtube videos about how the car loan version of 2008 is coming and it seems like it's always
but I just don't see how it can't hit eventually. Even shitty cars are crazy expensive now. I make good money and there's no way I'd make $1000/month payments for 7 years on one of those shitboxes.
Jump in the discussion.
No email address required.
Car loans are different because no one expected the underlying assets to appreciate. So yes, there is already way more repos than before and the banks are taking losses, but there isnt billions of dollars based on expecting car values to go up.
Jump in the discussion.
No email address required.
That's kinda worse because it's really easy to wind up underwater on a car loan and then when it's repoed, the bank/dealership can't count on getting the same value when they go to resell it.
Jump in the discussion.
No email address required.
Go check my other reply, i dont wanna write it out again
Jump in the discussion.
No email address required.
Jump in the discussion.
No email address required.
More options
Context
More options
Context
Yeah, they already weren't. Turns out they knew it was a car all along!
Jump in the discussion.
No email address required.
Jump in the discussion.
No email address required.
More options
Context
More options
Context
More options
Context
Isn't it worse if they don't expect the cars to appreciate? When they repo, they're worth nothing.
Jump in the discussion.
No email address required.
It's better when an asset that you don't expect to appreciate doesn't appreciate, than when an asset you DID expect to appreciate doesn't appreciate.
Jump in the discussion.
No email address required.
More options
Context
The mortgage crisis happened because there was an order of magnitude more money tied up on bets the houses would appreciate in value. Literally, for every dollar lent on a mortgage, 10 or more were betting the house would increase in value.
If all that happens is that the banks lose money on the original loan, that is tame, especially since the bank can recuperate a decent amount of those losses after a good repo.
Jump in the discussion.
No email address required.
lul, the big short did more to ruin "smart" people's understanding of the financial crisis than ignorance ever did. don't base your understanding on faulty moc docs
Jump in the discussion.
No email address required.
I apologize for simplifying, redditor. Mortgage backed securities can represent more than just a bet on "housing market go up".
Jump in the discussion.
No email address required.
no hahaha what i say is that the fin crisis has not much 2 do with the "tied up bets" lol
Jump in the discussion.
No email address required.
More options
Context
More options
Context
More options
Context
More options
Context
They're definitely worthless when Shaniq'a drives the thing off the tow truck
Jump in the discussion.
No email address required.
but depending on where shaniq'a lives, xhe may be served papers on the deficiency balance (made much larger by reducing the value of the car at auction) and have to deal with wage garnishment pending the results of the judgment
May Marsey Ta'aevann rectify our affairs. Marseummarhamna bil Bussy 'azeem.
Jump in the discussion.
No email address required.
Good joke mate
Jump in the discussion.
No email address required.
More options
Context
More options
Context
More options
Context
Yeah except thats already factored into their bad debt estimations. Its beating those estimates but the real reason the housing crash wrecked so much is that there were bets on bets on bets all based on the original bet that houses would appreciate.
Im not a financial expert but I watched The Big Short and my TRowe buddies confirmed that it got the general idea right
Jump in the discussion.
No email address required.
More options
Context
More options
Context
Isn't it more that the banks expect a certain number of defaults?
Jump in the discussion.
No email address required.
More options
Context
More options
Context
the banks might not get all their money back in a repo but they get a larger portion back than trying to "repo" a college degree
Jump in the discussion.
No email address required.
Yeah but there's more value to society doing that
Jump in the discussion.
No email address required.
More options
Context
More options
Context
my car car cost 4k cash.
Jump in the discussion.
No email address required.
No one asked
Jump in the discussion.
No email address required.
shoot you in the head irl if i ever get your addy
Jump in the discussion.
No email address required.
More options
Context
More options
Context
More options
Context
Not sure how it would bankrupt any corp. The auto repo market is pretty well established and they can just afford to take hits
Jump in the discussion.
No email address required.
lmao dude that aint how it works, the "hit" they take on cars is around the same, the question is: how many hits can they take
Jump in the discussion.
No email address required.
Like they care just repo the car and sell it to the next bipoc for the same inflated payments
Jump in the discussion.
No email address required.
More options
Context
More options
Context
More options
Context
More options
Context