Re:Show HN: Is the stock market going to crash?
by uptown on Tuesday August 08, 2017 @10:59AM
(#14958450)
True. Except it may be able to be used as a proxy for larger economic issues. If borrowers are defaulting on their car loans at a higher rate than usual, it begs the questions: "why" and "why now"?
Another thing is that no one is wildly pricing cars; the fact that lots of subprime people are buying cars does not drive up the price of cars for everyone else. Thus, if a whole bunch of subprime borrowers default, the rest of us aren't sitting there with a car that's actually worth a quarter of what we thought it would be worth.
We also don't keep an enormous share of our equity in cars the way that we do in housing.