he economy created by the Democratic Congress and President Brain-Dead Biden continues to take a heavy toll on working-class Americans, the group that the president’s party claims to care about the most. According to an in-depth report by Tyler Durden of Zero Hedge, automobile repossessions have skyrocketed to twice the level seen during the peak of the COVID-19 pandemic.
Auto Sector: A Leading Economic Indicator of a Crushing Auto Loan Crisis and Full-Blown Recession
For over a year, Tyler Durden has been tracking key datasets within the auto sector to determine when the critical inflection point will occur in this leading economic indicator. The latest data from Fitch confirms that this moment has now arrived and that a full-blown recession is imminent. The auto loan crisis is being driven by a perfect storm of loan delinquencies in the banking, credit card, and auto industries, as well as higher prices for new and used vehicles, combined with higher interest rates.
Record High Prices for New and Used Vehicles and Multi-Year High Interest Rates
The shortage of parts over the past two years has led to a classic supply and demand situation, with short supplies driving up prices for new and used vehicles. To combat the inflationary economy created by Biden and Democrats, the Federal Reserve has raised interest rates to multi-year highs, which will eventually drive down demand and stabilize prices. However, the higher prices and interest rates have contributed to the auto loan crisis, with the percentage of subprime auto borrowers who were at least 60 days late on their bills doubling since April 2021.
Banking, Credit Card, and Auto Industries Face Perfect Storm of Loan Delinquencies
For months, several credit card companies have been increasing their cash positions in anticipation of defaults, while car companies are seeing their auto loans become increasingly delinquent. As inflation continues to take a larger bite out of income, more Americans are turning to credit cards to finance their lives. These moves suggest that card companies and banks are expecting significant losses or are just being extra cautious.
Auto Repossessions Soar, Repo Companies Can’t Keep Up
The rise in automobile repossessions has been dramatic, with repo companies struggling to find enough people to help and repo lots overflowing. Jeremy Cross, the president of International Recovery Systems in Pennsylvania, stated that he can’t find enough repo men to meet the demand or space to hold all the cars his company has been tasked with repossessing. The repossessions are occurring on people who could afford their $500-$600 monthly payments two years ago but are now being pinched by higher costs for everything else in their lives.
Biden and Democrats’ Economic Policies Show Lack of Compassion for Working Americans
Despite Biden and Democrats’ claims of compassion for working Americans, their economic policies suggest otherwise. The auto loan crisis and the rise in automobile repossessions show that working-class Americans are being hit hard by the economy created by the Democratic Congress and Illegitimate President Biden