Black Friday

[bigzee]

China-US trade tensions rising... US President Donald Trump on Tuesday
seemed to quash hopes of a trade truce with China. In an interview with the
Wall Street Journal, Trump said he expects to raise tariffs on $200 billion
in Chinese imports to 25% from 10% currently...and he would also slap duties
on all remaining annual imports from China ($267 billion worth) if
negotiations with China’s leader Xi Jinping fail to produce a trade deal. He
said it was “highly unlikely” he would accept China’s request to hold off on
the increase, planned for Jan. 1.

More good news continue to float down the river.

[GDR]

Once the bubble bursts; it acts like dominos across markets. Now GM fallout which has a much bigger root attached called sub-prime auto loans.

Once debt is no longer a growth asset, look out . . . it becomes a heavy liability. This is the beginning of the painful debt unwind. No way of stopping this . . . . Central bankers now powerless.

How do you connect closing the GM plant with sub prime auto loans? Its not going to change the value of vehicles or the dynamics of buyers finance. Sounds like the plant has basically reached its lifespan and was producing sedans that consumers didnt want.

Not that I dont agree there is lots of high rick debt out there juat dont see the connection to this issue.

[checking]

Whatcha talkin about, Willis?

Pharma feels negative waves, why not positive ones?

[errolanderson]

How do you connect closing the GM plant with sub prime auto loans? Its not going to change the value of vehicles or the dynamics of buyers finance. Sounds like the plant has basically reached its lifespan and was producing sedans that consumers didnt want.

Not that I dont agree there is lots of high rick debt out there juat dont see the connection to this issue.

GDR . . . good point

Believe the GM plants closing and job losses plus the brewing sub-prime auto loan fallout are part 'n parcel of the financial bubble bursting within the entire auto industry. The impeding sub-prime auto loan fallout will place additional pressure on new car margins for all, not just GM. Apparently, Ford margins are already cut-in-half on some models.

Used car values could come under pressure over the next year (IMO) due to credit issues. Many auto makers may feel-the-crunch.

[MBgrower]

many people taking out 7-8 year loans on cars. what morons. loses half its value in one year.

[farmaholic]

many people taking out 7-8 year loans on cars. what morons. loses half its value in one year.

Who the **** cares...we both might know it's a stupid move but if the borrower has no intentions of paying, or can't, at least they had the use of a new car. Can get on the wrong side of market value real quick if it's wrote off in an accident...

Whose fault is it if you give a known type 1 diabetic kid a sucker? The kid's for taking it or yours for giving it to them? The kid can't resist the temptation and you should know better.

[biglentil]

0% for 5 years sounds smart when the borrower/buyer can earn more interest on the capital in his/her/its savings account or better. Warrantee in an inflationary environment keeps going up in value as well. Mazda for example has an unlimited 7 year warrantee. Some long distance commuters have 500000kms on their fully warranteed Mazda. Still Stupid?

On the flip side you can own a 400000km worn out rusty jalopy that is constantly breaking down. Parts are pricey, tools, and labour even more so. Downtime unproductive if not downright dangerous. Resale value virtually non existant once it busts.

I drive a 2007 4wd work truck most days getting 12mpg. I often think how silly I am because I could make payments on a 2019 Direct Injection Active Management dohickey Truck that Averages 23mpg with the fuel savings alone.


Pick your poison!

[farmaholic]

The interest is built into the price of the vehicle...sadly the guy who pays cash probably doesn't get much of a break or value for doing it. And while you're making payments on that 0% loan inflation is eroding the value of the excess cash in the bank.

[biglentil]

The interest is built into the price of the vehicle...sadly the guy who pays cash probably doesn't get much of a break or value for doing it. And while you're making payments on that 0% loan inflation is eroding the value of the excess cash in the bank.

What if the dollars are then utilized to pay off high interest debt or start a successful business? If everyone bought used we would look like Cuba and GM plants would shut their doors.

[errolanderson]

Cash is king . . . now outperforming stocks, bond and commodities. This isn't good news for bankers.

Just have to replace your mattress every so often . . . .

[biglentil]

Gold is outperforming the Canadian dollar.

[farmaholic]

What if the dollars are then utilized to pay off high interest debt or start a successful business? If everyone bought used we would look like Cuba and GM plants would shut their doors.

My point was there is unlikely something for nothing.

I even bought extended warranty on the new vehicle I bought in 2010....never again! Vehicles have become very dependable. Although my new vehicle warranty ďoesn't sound as comprehensive as Mazda's is. Vehicles manufacturers wouldn't offer the warranty they do if they weren't confident about their vehicle's dependability.

Everyone manages their affairs according to their current circumstances, who am I to say someone else is doing it wrong. To each their own.

There was alot of cheap and easy credit out there to be had.