Dysfunction Is Central to the Basic Functioning of American Society
Pandemic measures like the stimulus temporarily helped and empowered working-class and vulnerable people. And that’s quickly becoming a problem for an economy based on their hyper-exploitation.
“A similar dynamic surfaced in the used-car market. While it’s common knowledge that used-car prices shot up during the pandemic, it’s less widely appreciated that a key reason was the decline in auto repossessions.
Since even used cars are well beyond the means of many Americans, about two-thirds of all auto purchases in the United States are financed with some kind of loan. Over the last decade, auto lending has expanded into the subprime market, as financiers embrace the kind of risky lending that led to the mortgage crisis in 2008. As a result, about two million cars are repossessed by lenders annually. These cars are then resold by dealers, forming a crucial part of the used-auto supply chain.”Posted on 2021-11-22T17:09:27+0000