Auto Loans and Record Debt

Auto Loans and Record Debt Are sales fueled by bad debt good? In this audio interview at http://www.preciousmetalsinvesting.com we discuss the record auto sales. We have been told this is a sign that the economy is healthy. But is it really? A precursor to a bubble is the stimulus of artificial debt. Typically auto sales means consumer is in good shape. But you find today's auto sales have been fueled by an explosion of low quality debt. The ways sub-prime loans fueled the housing bubble today's auto sales have also been fueled by lesser quality loans. If I can get an auto with little money down and great terms that might be great for me. But if I run into economic trouble and can't maintain that debt by making payments that is not a good thing. In the past typically you would be able to get a 36 month loan. Today auto buyers are being offered now an 84 month loans. Although this certainly lowers the monthly payments it also makes autos available to people who might not be able to support the payments in the future. This Precious Metals Investing podcast is also available on iTunes at: Precious Metals Investing podcast at iTunes