Pages

Monday, January 11, 2016

Is the Auto Loan Bubble Ready to Pop?

Is the Auto Loan Bubble Ready to Pop?: "On Tuesday, it was announced that over seventeen million new vehicles were sold in 2015, the highest it’s ever been in United States history."



This is caused by the price fixing by the Central Bank. Interest rates are simply act like prices in the marketplace. However, with interest rates, when they are price fixed, they have similar consequences that take place with other price fixing schemes. With the case of interest rates, when price fixing is implemented, asset bubbles appear. The Real Estate market crash is an example of this, as this Auto Loan bubble could be another.

No comments: