Car Repos on the Rise

[ay1820]

I remember reading that one of the reasons we printed money rather than borrowed during COVID is because we couldn't get anyone to buy our stuff. I haven't dug into it, though, so I can't say that for sure. But I'm not certain that the dollar is considered a safe haven any longer.

It absolutely still is considered a safe haven currency: https://www.fxcm.com/uk/insights/what-are-safe-haven-currencies-do-you-need-them-in-your-portfolio/

And here: https://oilprice.com/Finance/the-Ma...s-Showing-Strength-As-A-Safe-Haven-Asset.html

Maybe things are bit F@*ked up here right now, but they are just as F@*ked up everywhere and even more so in most places.

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[Cordero1]

Still more respected than 95% of currencies around the world. Really only a few other currencies even come close.

Yes you are correct but does not mean it is not devaluation.

 

[Biggus Dickus]

I know people like to trash the dollar, but it is still the go-to safe haven currency. Can you name another that has taken over that spot?

No - just look at the DXY which has been hovering around 113. Not only did the greenback hit equivalency with the Euro, it almost did so with the Pound which is astonishing.

 

[Cordero1]

I know people like to trash the dollar, but it is still the go-to safe haven currency. Can you name another that has taken over that spot?

I'm not trashing it, just pointing out the obvious. The petrol dollar is no more which is what made our dollar so powerful. Most countries in the middle east do not sell their oil through the petrol standard we used for so many decades & now accept what ever currency the country of purchase uses. With B.R.I.C.S. slowly transitioning all their currency to precious metals backed money, it's going to leave our paper money that is not backed by anything behind. I hope to God it won't happen, but sure is starting to look that way. Just look at the Euro how far it crashed in the last few months. People saw their saving fold in half. I could be wrong, & hope that I am, but either way I'm bracing for impact.

 

[shogun32]

Everyone is over looking the fact that the petrol dollar is no longer respected & how fast our dollar is devaluation. Not as fast as the Euro but still going down the toilet. We will have a crash soon, but it won't just be the housing & car market, but also an economic collapse.

as some of us have discovered, living out of a Mustang is not remotely fun or comfortable.

 

[Cordero1]

as some of us have discovered, living out of a Mustang is not remotely fun or comfortable.

Agreed!

 

[TopJimmyCooks]

Car repossessions are on the rise in 2022. With an already inflated used car market, the influx of used vehicles may caused a sudden drop in used car prices. What do y'all think?

I think people should pay their bills.

 

[ice445]

Personally I kick myself for not buying a home when I had the chance. I'll be renting for a while.

I think people should pay their bills.

Preposterous, other people should pay my bills for me!

 

[Mspider]

Yes you are correct but does not mean it is not devaluation.

Yes its being devalued. To say its no longer "respected" is a ignorant statement. Most people around the world would rather hold USD than local currencies. Unless you are living in a certain European countries or maybe China. We as Americans lack world perspective and how most people on earth live.

 

[2022 Mach 1]

Man this thread reads like chicken little...

 

[HoosierDaddy]

OP wasn't guessing. Here is the writeup.

https://www.baynews9.com/fl/tampa/news/2022/09/01/struggling-economy-leads-to-rise-in-repossessions

What will be the effect on elections if disgruntled voters don't want to walk to the polls?

 

[Cordero1]

Yes its being devalued. To say its no longer "respected" is a ignorant statement. Most people around the world would rather hold USD than local currencies. Unless you are living in a certain European countries or maybe China. We as Americans lack world perspective and how most people on earth live.

Never said the dollar is not respected, you are the one who keeps repeating that. The petrol dollar is what made the dollar king in the world. By saying the petrol dollar is no longer respected you have to understand the deal that was struck decades ago by the world & how it works. It's no longer respected in the fact that the countries that struck the deal are no longer honoring it any more. In order to buy oil from Iraq, or Iran per say even if you were Russia or India you would have to purchase the oil with dollars & only dollars. Those countries no longer respect the deal struck & now accept the purchasing country's currency. No need to insult but if it makes you feel better about yourself, by all means continue.

 

[sk47]

Man this thread reads like chicken little...

Hello; A difference being in the chicken little tale there is no real danger. How bad the current economic disaster will become is hard to judge. A thing is for some the disaster is already happening. For others it is hard times. For a few it is, so far, a blip of extra spending only as they have funds left.
Todays situation has some elements of the 2006 housing/banking fiasco. Not all the same to be sure. Some new elements not seen before but also a lot of people holding debt they cannot continue to service.
The USA's national debt may have reached a tipping point. Hard to know at what level the debt tips things out of control. I have been wondering how long a nation can keep building up debt without paying any principal for a few decades. The last few years saw massive overspending which adds to inflation. Soon the interest payments on the debt alone will be over $1,000,000,000,000 (one trillion) with not a dime going to pay down the principal. A sign the rest of the world is skeptical about the soundness of the dollar has already been mentioned. Oil can now be bought with other than USD's

Chicken little is a story of panic for no good reason. The situation today has some reasons for concern. I am old at 75. Seen a few economic downturns. Also was a baby boomer. I was a few years behind the leading edge of the boomer birth bulge. Seemed every time I aged into a new life milestone there were so many others of similar age that our sheer numbers overwhelmed systems. I recall the super long lines registering for college classes. The large numbers in the general classes. When I graduated competing with so many other that jobs were hard to find. Point being the huge boomer numbers caused changes just because of the numbers. Now we have some new and unprecedented problems.
The bill is coming due for the pandemic lockdowns-shutdowns and the massive spending associated with the pandemic decisions. Regardless of whether a person thinks they were wise or not the fact remains they are part of today's issues.
On top of that add some "green agenda" moves in the war on fossil fuels and we got very high energy costs. This winter may tell the tale. Last spring, I bought several extra loads of firewood as a just in case. Under normal circumstances enough for several winters. I usually burn much less than a pickup load. Think I bought at least five extra loads to add to the three seasoned loads I already had. I am taking this very seriously.

To the topic of the thread. I do think used car prices will go down. Seen it a few times over the decades. A problem I have had in the past was being strapped for funds or in debt so i could not buy a 1965 Pontiac GTO in the 1970's.

In one post as I read thru the thread a poster said it will take years to save up so he could pay cash and not have to borrow on credit. Yes, that is true. Took me nearly ten years to get to that point. First, I saved enough to pay for a used van to use as a work truck. I used those savings as collateral and borrowed against my own savings. Got a good loan interest rate that way. After i paid of the loan in three years I had the van ( my avatar) and my savings as well. After that i kept making deposits into savings as close to car payments as i could. My first fully paid for vehicle with no loan was a 1989 Ford f-150 pickup. Had to do without a lot to get there.

I am still wanting a bucket list Mustang. I will wait to see if prices go down. At least this time I am not broke nor in debt. Not been in debt since 1989. I was 62 years old when I bought my current home with savings. Needed a lot of work but it is close to being finished. This home was purchased in 2010 for less than the sellers had paid just three years earlier right before the housing crash.

 

[2022 Mach 1]

Hello; A difference being in the chicken little tale there is no real danger. How bad the current economic disaster will become is hard to judge. A thing is for some the disaster is already happening. For others it is hard times. For a few it is, so far, a blip of extra spending only as they have funds left.
Todays situation has some elements of the 2006 housing/banking fiasco. Not all the same to be sure. Some new elements not seen before but also a lot of people holding debt they cannot continue to service.
The USA's national debt may have reached a tipping point. Hard to know at what level the debt tips things out of control. I have been wondering how long a nation can keep building up debt without paying any principal for a few decades. The last few years saw massive overspending which adds to inflation. Soon the interest payments on the debt alone will be over $1,000,000,000,000 (one trillion) with not a dime going to pay down the principal. A sign the rest of the world is skeptical about the soundness of the dollar has already been mentioned. Oil can now be bought with other than USD's

Chicken little is a story of panic for no good reason. The situation today has some reasons for concern. I am old at 75. Seen a few economic downturns. Also was a baby boomer. I was a few years behind the leading edge of the boomer birth bulge. Seemed every time I aged into a new life milestone there were so many others of similar age that our sheer numbers overwhelmed systems. I recall the super long lines registering for college classes. The large numbers in the general classes. When I graduated competing with so many other that jobs were hard to find. Point being the huge boomer numbers caused changes just because of the numbers. Now we have some new and unprecedented problems.
The bill is coming due for the pandemic lockdowns-shutdowns and the massive spending associated with the pandemic decisions. Regardless of whether a person thinks they were wise or not the fact remains they are part of today's issues.
On top of that add some "green agenda" moves in the war on fossil fuels and we got very high energy costs. This winter may tell the tale. Last spring, I bought several extra loads of firewood as a just in case. Under normal circumstances enough for several winters. I usually burn much less than a pickup load. Think I bought at least five extra loads to add to the three seasoned loads I already had. I am taking this very seriously.

To the topic of the thread. I do think used car prices will go down. Seen it a few times over the decades. A problem I have had in the past was being strapped for funds or in debt so i could not buy a 1965 Pontiac GTO in the 1970's.

In one post as I read thru the thread a poster said it will take years to save up so he could pay cash and not have to borrow on credit. Yes, that is true. Took me nearly ten years to get to that point. First, I saved enough to pay for a used van to use as a work truck. I used those savings as collateral and borrowed against my own savings. Got a good loan interest rate that way. After i paid of the loan in three years I had the van ( my avatar) and my savings as well. After that i kept making deposits into savings as close to car payments as i could. My first fully paid for vehicle with no loan was a 1989 Ford f-150 pickup. Had to do without a lot to get there.

I am still wanting a bucket list Mustang. I will wait to see if prices go down. At least this time I am not broke nor in debt. Not been in debt since 1989. I was 62 years old when I bought my current home with savings. Needed a lot of work but it is close to being finished. This home was purchased in 2010 for less than the sellers had paid just three years earlier right before the housing crash.

I wad born in 1980. Worst interest rates in history. I owe a house 3 mustangs. Monetary policy over tha past 16 years has been way too loose. Those that thought shore leave was gonna last forever are in trouble. The fed policy will revert very quickly

 

[Mspider]

Never said the dollar is not respected, you are the one who keeps repeating that. The petrol dollar is what made the dollar king in the world. By saying the petrol dollar is no longer respected you have to understand the deal that was struck decades ago by the world & how it works. It's no longer respected in the fact that the countries that struck the deal are no longer honoring it any more. In order to buy oil from Iraq, or Iran per say even if you were Russia or India you would have to purchase the oil with dollars & only dollars. Those countries no longer respect the deal struck & now accept the purchasing country's currency. No need to insult but if it makes you feel better about yourself, by all means continue.

ahh I see what you are talking about. Your talking about the actual linkage not being respected, not the dollar itself. I know exactly what you are talking about.

Yes that is a big problem and you are correct the world is probably moving away from the petrol dollar sooner or later. This will have bad consequences for the US dollar. But this is more of a long term problem. I do not believe this is a talking point for today`s inflation as the vast majority of oil sales are still US dollar based. And the US dollars are the most kept reserve currency in global banks.

Within the next couple of decades this might be the catalyst for the next crisis.

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