Jamie Diamon says: An Economic Hurricane is on the Horizon.

[Mai72]

This video is very interesting: Auto Loan Apocalypse

What the creator of this video is stating is we are going to witness people having their new cars repoed in mass, because the truth is many of the people we see who are driving these brand new $60k luxury vehicles can't afford the high monthly payments, and should had never been able to purchase these vehicles to begin with. They were able to secure these car loans because of the stimulus money that was given out during COVID, and many were getting more money from unemployment than their actual income before the pandemic. Maybe this is why we are seeing so many people who have quit thier jobs, and many more who haven't gone back to the workforce. Well, the party has ended and many people who financed these vehicales are going to face repossessions. In my city, I've noticed a lot of people driving new expensive vehicles. Have you guys noticed the same?

 

[Mai72]

Yeah. A lot of people in my neighborhood have single cars that cost more than every car my wife and I have ever owned combined (6 cars between us). Many are more expensive than all our cars and my Wave Runner combined. I've never understood way someone even wants a $90,000 car or truck. Especially a $90,000 truck that won't even fit in the garage so it sits out in the sun and hail.

Valadition. They will never admit it, but the truth is most people care what others think about them, so they want to put on a front that they are they are successful and are able to afford these toys. New cars, new wave runners, new motor bikes, expensive clothing. I'm not hating. I'm just trying to understand the mindset of most people, because I want to do the complete opposite. 🙂

 

[Fenixgoon]

This video is very interesting: Auto Loan Apocalypse

What the creator of this video is stating is we are going to witness people having their new cars repoed in mass, because the truth is many of the people we see who are driving these brand new $60k luxury vehicles can't afford the high monthly payments, and should had never been able to purchase these vehicles to begin with. They were able to secure these car loans because of the stimulus money that was given out during COVID, and many were getting more money from unemployment than their actual income before the pandemic. Maybe this is why we are seeing so many people who have quit thier jobs, and many more who haven't gone back to the workforce. Well, the party has ended and many people who financed these vehicales are going to face repossessions. In my city, I've noticed a lot of people driving new expensive vehicles. Have you guys noticed the same?

One $2000 check isn't the breaking point when you're considering a 60k car. The math simply doesn't work.

Maybe people don't want to be fucking wage slaves anymore in the name of "shareholder value" in which they don't benefit at all.

 

[Thump553]

Yeah, but how are you going to move the boat you don't own or buy a refrigerator every week from Home Depot with your fuel efficient vehicle? That's right, you won't. Checkmate libs.

I presume you are being sarcastic, but just in case, at Home Depot you can rent a pickup or van by the half hour or hour at cheap rates. I assume Lowes does the same thing. Or better still pay for installation and have them haul it up your steps.

 

[Fenixgoon]

I presume you are being sarcastic, but just in case, at Home Depot you can rent a pickup or van by the half hour or hour at cheap rates. I assume Lowes does the same thing. Or better still pay for installation and have them haul it up your steps.

Definitely send your sarcasm meter in for calibration 😛

 

[Thump553]

Definitely send your sarcasm meter in for calibration 😛

NP. But I've lost count of the number of times I've heard that very reason as justification for buying land barges/pickup trucks for daily commuters.

 

[Mai72]

One $2000 check isn't the breaking point when you're considering a 60k car. The math simply doesn't work.

Maybe people don't want to be fucking wage slaves anymore in the name of "shareholder value" in which they don't benefit at all.

Was it one $2000 check, or didn't most people get a few $1200-2000 checks? And what about the high unemployment checks many were getting during COVID? The truth is many people were making more from unemployment than their actual job. This is what the creator who made the video is arguing. That many people who were getting $2-4k a month from unemployment were going out and spending money on luxury vehicles that they couldn't afford. And, about being a wage slave worker. People should had paid themselves first by saving, and investing in a skill set so they could put themselves in a position to get a better paying job. Instead, many people bought items that they couldn't afford, which in-turn puts them in a position that they now will have to take a low wage position because they have to make the payments or else face repossession and/ or default on the items that they bought.

If I wanted to escape wage slavery, why would I want to give my money away? I'd want to pay myself first, and invest in myself. The last thing I'd want to do is give away my money and power to a company or companies that don't have my best interest. And, what are these people going to do? They are going to be forced back into the workforce because they won't have any money. Unless they plan to live at home with their parents forever, or are forced on the streets and become homeless. If you don;t want to be a wage slave than you should be putting money away, not giving it all away to a mindless corporation. That is my point. 🙂

 

[Zorba]

Valadition. They will never admit it, but the truth is most people care what others think about them, so they want to put on a front that they are they are successful and are able to afford these toys. New cars, new wave runners, new motor bikes, expensive clothing. I'm not hating. I'm just trying to understand the mindset of most people, because I want to do the complete opposite. 🙂

The first time a bought a new car, a 2014 Subaru Forester Premium (second lowest trim), I was embarrassed about owning a new car for about 3 years. Being frugal is part of my identity, so I was worried my $25k splurge would hurt that.

But I agree, most people want everyone else around them to think they are successful, it's sad.

I will say my wave runner was a compromise, I've wanted a boat for 15 years, and finally decided a wave runner could give me a lot of what I wanted at a small fraction of the price.

 

[Fenixgoon]

Was it one $2000 check, or didn't most people get a few $1200-2000 checks? And what about the high unemployment checks many were getting during COVID? The truth is many people were making more from unemployment than their actual job. This is what the creator who made the video is arguing. That many people who were getting $2-4k a month from unemployment were going out and spending money on luxury vehicles that they couldn't afford. And, about being a wage slave worker. People should had paid themselves first by saving, and investing in a skill set so they could put themselves in a position to get a better paying job. Instead, many people bought items that they couldn't afford, which in-turn puts them in a position that they now will have to take a low wage position because they have to make the payments or else face repossession and/ or default on the items that they bought.

If I wanted to escape wage slavery, why would I want to give my money away? I'd want to pay myself first, and invest in myself. The last thing I'd want to do is give away my money and power to a company or companies that don't have my best interest. And, what are these people going to do? They are going to be forced back into the workforce because they won't have any money. Unless they plan to live at home with their parents forever, or are forced on the streets and become homeless. If you don;t want to be a wage slave than you should be putting money away, not giving it all away to a mindless corporation. That is my point. 🙂

If you're getting 2-4k/month and not working, wtf do you think that money is going?

Rent. Food. Gas. Car repairs. Healthcare. Studies in basic income show this is what people use it for.

It's not like all those other costs magically stopped because someone's out of a job all the sudden.

Investment is a great option when you have money to invest in the first place. You can't invest if your options are "spend money" versus "starvation" or "homelessness"

 

[Leeea]

This video is very interesting: Auto Loan Apocalypse

What the creator of this video is stating is we are going to witness people having their new cars repoed in mass, because the truth is many of the people we see who are driving these brand new $60k luxury vehicles can't afford the high monthly payments, and should had never been able to purchase these vehicles to begin with. They were able to secure these car loans because of the stimulus money that was given out during COVID, and many were getting more money from unemployment than their actual income before the pandemic. Maybe this is why we are seeing so many people who have quit thier jobs, and many more who haven't gone back to the workforce. Well, the party has ended and many people who financed these vehicales are going to face repossessions. In my city, I've noticed a lot of people driving new expensive vehicles. Have you guys noticed the same?

Spoiler: video link

That video is moronically stupid and completely out of touch with reality.



I also did not spend any time researching the subject. So my opinion is just as valid as that stupid youtubers. However, I know the following things:
A. If you are actually middle class you are making a lot more money then before.
C. Places your willing to spend that money have dried up. International vacations? out. Disneyland? nah. Hanging out at the bar? meh.

So what do you do with that money?
buy a house?:

Home prices surged over 20% in March as interest rates also rose, according to S&P Case-Shiller

Home prices continued to increase their gains, despite slower sales and higher mortgage rates.

www.cnbc.com

buy a car?:
https://www.cnbc.com/2022/05/06/use...ord-highs-easing-the-impact-of-inflation.html
"However, prices are still extremely high, and the index remains up 14% from a year ago. "

buy a RV?:
https://leisurecw.com/rv-article/the-future-of-rv-prices-sky-high-or-down-low/
"They’re buying everything. Class A and B motorhomes, travel trailers, and even sprinter vans are seeing far less depreciation than usual."


What is happening?:
The government flushed $14 Trillion dollars into the economy to keep it alive during Covid.

COVID Money Tracker

See how much COVID relief has been spent and where the money has gone with the #COVIDMoneyTracker tool.

www.covidmoneytracker.org

So what happened with the money?:
8.5% went to containing covid
12.5% went to unemployment, covid, etc
27% went to local and state governments
15% went right into infrastructure
as far as I can tell, the rest went to pork*

Lets talk about the 27%, what does that money go to? Typically, fixing long standing problems. Resealing parking lots, community pool repairs, that sort of thing. Lots of money dumped directly into the upper middle business owners and contractors


*guilty as charged, the business I manage received massive checks right from the government. 100% legal. Most of it was not the paycheck protection program either. The owner purchased a car. No loan. He just flat bought it with cash.


tip: You might think your middle class, but your not. Most peasants like myself never realize this. 15% of the us population is upper middle class, and that is a whole lot of new audi's, bmws, etc.

The government defines middle class a lot wider then that, but it really is not.
Middle class = enough disposable income to buy a new car or house* for cash.
*several properties that sold within a quarter mile from where I am sitting were all purchased with cash

Rich = Your checkbook writes loans*, and your actual income is disguised as untaxable capital assets. Your loans are backed up by your assets and thereby receive rates of interest below inflation. In short, your assets gain value faster then the interest on your loans, inflation pays your bills, and congressmen throw money at you.

You do not feel like your middle class because your not.

 

[Fenixgoon]

That video is moronically stupid and completely out of touch with reality.



I also did not spend any time researching the subject. So my opinion is just as valid as that stupid youtubers. However, I know the following things:
A. If you are actually middle class you are making a lot more money then before.
C. Places your willing to spend that money have dried up. International vacations? out. Disneyland? nah. Hanging out at the bar? meh.

So what do you do with that money?
buy a house?:

Home prices surged over 20% in March as interest rates also rose, according to S&P Case-Shiller

Home prices continued to increase their gains, despite slower sales and higher mortgage rates.

www.cnbc.com

buy a car?:
https://www.cnbc.com/2022/05/06/use...ord-highs-easing-the-impact-of-inflation.html
"However, prices are still extremely high, and the index remains up 14% from a year ago. "

buy a RV?:
https://leisurecw.com/rv-article/the-future-of-rv-prices-sky-high-or-down-low/
"They’re buying everything. Class A and B motorhomes, travel trailers, and even sprinter vans are seeing far less depreciation than usual."


What is happening?:
The government flushed $14 Trillion dollars into the economy to keep it alive during Covid.

COVID Money Tracker

See how much COVID relief has been spent and where the money has gone with the #COVIDMoneyTracker tool.

www.covidmoneytracker.org

So what happened with the money?:
8.5% went to containing covid
12.5% went to unemployment, covid, etc
27% went to local and state governments
15% went right into infrastructure
as far as I can tell, the rest went to pork*

Lets talk about the 27%, what does that money go to? Typically, fixing long standing problems. Resealing parking lots, community pool repairs, that sort of thing. Lots of money dumped directly into the upper middle business owners and contractors


*guilty as charged, the business I manage received massive checks right from the government. 100% legal. Most of it was not the paycheck protection program either. The owner purchased a car. No loan. He just flat bought it with cash.


tip: You might think your middle class, but your not. Most peasants like myself never realize this. 15% of the us population is upper middle class, and that is a whole lot of new audi's, bmws, etc.

The government defines middle class a lot wider then that, but it really is not.
Middle class = enough disposable income to buy a new car or house* for cash.
*several properties that sold within a quarter mile from where I am sitting were all purchased with cash

Rich = Your checkbook writes loans*, and your actual income is disguised as untaxable capital assets. Your loans are backed up by your assets and thereby receive rates of interest below inflation. In short, your assets gain value faster then the interest on your loans, inflation pays your bills, and congressmen throw money at you.

You do not feel like your middle class because your not.

No middle class family is buying a house, let alone houses, with cash. That's all private equity investment companies.

Median household income is something like 65k/year. That's literally "the middle class" based on income.

I'd bet that most people here are in the top20% of earners in the US, if not more. This forum is far from representative of the general population

 

[[DHT]Osiris]

No middle class family is buying a house, let alone houses, with cash. That's all private equity investment companies.

Median household income is something like 65k/year. That's literally "the middle class" based on income.

I'd bet that most people here are in the top20% of earners in the US, if not more. This forum is far from representative of the general population

His point is, 'middle class' isn't 'middle of the earners' (mean or median), it's 'between the rich and everyone struggling to either get by (lower class), or get what they'd like within reason (lower-middle)'. It's probably better definable as between the top 20% and the top 10%, though it should be closer to the top 50% to top 20% (thanks Reagan).

 

[Leeea]

No middle class family is buying a house, let alone houses, with cash. That's all private equity investment companies.

I have met the new owners of all but one of the properties in question.

They are not private equity investment companies.

The one guy is a sales man of medical supplies, not sure what his wife does. Two kids.
The other one is a nurse + sales guy of some type. These gave me the vibe they reached to far. Also two kids.
Another was a couple from Georgia, looking to escape the heat of summer. Retirement age, but not retired. Classy.
The fourth is a manager a grocery store + medical insurance adjuster. Grown up kids.

I never met the fifth couple, they immediately ripped the home down and are building a 3 story monstrosity on its lot now. It is huge, and nobody in the area has met them yet. People are upset because they are also putting in a gated driveway and fencing, and no other homes in this area have that.

 

[Homerboy]

One $2000 check isn't the breaking point when you're considering a 60k car. The math simply doesn't work.

Maybe people don't want to be fucking wage slaves anymore in the name of "shareholder value" in which they don't benefit at all.

55% of Americans own stock
and 89% of the stocks are owned by 11% of people.

"Shareholder value" means squat to the vast majority of Americans. Complete scam.

 

[iRONic]

There is an amusement park nearby. When it was independent it was known as Riverside and hired locals and college kids. It's now part of the Great America chain and it mostly staffed by foreigners on the H2-B program.

Ohman… I lived with my Meme’ & Pepe’ in Feeding Hills while my father was in Vietnam. We were so close to Riverside that we could hear the stock cars running every Friday night! Good times…

 

[Fenixgoon]

His point is, 'middle class' isn't 'middle of the earners' (mean or median), it's 'between the rich and everyone struggling to either get by (lower class), or get what they'd like within reason (lower-middle)'. It's probably better definable as between the top 20% and the top 10%, though it should be closer to the top 50% to top 20% (thanks Reagan).

Right, so "middle class" isn't *actually* middle class.

 

[Thump553]

Ohman… I lived with my Meme’ & Pepe’ in Feeding Hills while my father was in Vietnam. We were so close to Riverside that we could hear the stock cars running every Friday night! Good times…

One of the first things Great America did was kill the track. At the same time they dumped the ride I called the Puke A Whirl-a circular spinning room where you were pushed against the wall while the floor dropped out similar to the ride Richard Thompson sung about in the Wall of Death. These days its just another generic Great America.

 

[iRONic]

Yeah we had season passes since we could walk over. I was ~8 and too small to get on that Puke-A-Whirl. 🤣😂

 

[pete6032]

High inflation, high gas prices, the war in Ukraine are going to contribute to a very severe economic downturn, and many Americans aren't going to be prepared. Its going to be interesting if we dip into a recession. How severe is it going to be? Will the average Joe and Jane be able to weather the downturn. Are people saving? How many people have at least a 6-month money cushion just in case if something tragic comes up. And what about the crypto bros? Will they go bust. As for me, I'm paying off all of my debt. I want as little debt weighing me down, just in case Jami is correct. And, what about Peter Schiff? Seems like he does nothing but fear monger. He was correct about the 2006-09 housing crash. Will he be correct about the next crash which he has said is going to be much worse. Will the economic hurricane turn into a tsunami? Only time will tell.

Brace yourselves for an economic 'hurricane,' Jamie Dimon says

Jamie Dimon is no meteorologist, but the JPMorgan Chase CEO is predicting an economic "hurricane" caused by the war in Ukraine, rising inflation pressures and interest rate hikes from the Federal Reserve.

www.cnn.com

For as much as you hate the church you sure do like a good doomsday story.

 

[nOOky]

I used Dave Ramseys principles many years back. The logic is hard to dismiss, discounting the notion that you should pay off higher interest debt first rather than his method. I was tired of paying out interest, now I collect interest. The reason he wants people to quit credit cards is that so many go back into debt with them, and only 2% of people pay the balance every month. As many here have said, quit whining if you have a house payment, two new vehicle payments, and other toys you can't afford. And the logic of some people, my co-irker bought a $3,200 fancy scooter that gets over 50 MPG to drive to work to save fuel costs. He's only paying it off over three years, but it was only 4% interest financed. I told him to do the math on how long it would take to make up the $3,500 if you include tax and insurance etc. and he was only paying $25 a week more for gas right now.

One of the benefits is that we now have an emergency fund built up, a health savings account with a balance that covers every dollar if we both have catastrophic injuries or illnesses at the same time, and we are able to buy bonds and mutual funds while the economy suffers. I don't sweat filling up my gas tank, I get cranky, but a thousand dollar sudden bill doesn't break me, I just pay it and put the money back over time. In reality I think my wage adjusted for inflation the past 20 years is less, but once you get on the other side of debt and budget your money it goes a lot farther, and the peace of mind in invaluable.

 

[Fenixgoon]

I used Dave Ramseys principles many years back. The logic is hard to dismiss, discounting the notion that you should pay off higher interest debt first rather than his method. I was tired of paying out interest, now I collect interest. The reason he wants people to quit credit cards is that so many go back into debt with them, and only 2% of people pay the balance every month. As many here have said, quit whining if you have a house payment, two new vehicle payments, and other toys you can't afford. And the logic of some people, my co-irker bought a $3,200 fancy scooter that gets over 50 MPG to drive to work to save fuel costs. He's only paying it off over three years, but it was only 4% interest financed. I told him to do the math on how long it would take to make up the $3,500 if you include tax and insurance etc. and he was only paying $25 a week more for gas right now.

One of the benefits is that we now have an emergency fund built up, a health savings account with a balance that covers every dollar if we both have catastrophic injuries or illnesses at the same time, and we are able to buy bonds and mutual funds while the economy suffers. I don't sweat filling up my gas tank, I get cranky, but a thousand dollar sudden bill doesn't break me, I just pay it and put the money back over time. In reality I think my wage adjusted for inflation the past 20 years is less, but once you get on the other side of debt and budget your money it goes a lot farther, and the peace of mind in invaluable.

imagine if we taught these kinds of life assessments in school...maybe people wouldn't be so foolish with their money

 

[nickqt]

imagine if we taught these kinds of life assessments in school...maybe people wouldn't be so foolish with their money

Spoiler alert, it wouldn't be good for "the economy", and so it isn't.

 

[[DHT]Osiris]

imagine if we taught these kinds of life assessments in school...maybe people wouldn't be so foolish with their money

Feature, not a bug.

 

[Lezunto]

I thought there was monetary limit on unemployment. Meaning a dollar per week level that an individual U.S. state would not dare to surpass.

There is also a limited period of time one could draw unemployment. I thought most states had it at 26 weeks.

So, how could anyone make more money on unemployment than they did when they were working? Your salary had to be pretty high to receive the top level.

If anyone on this forum knows of cases where individuals managed to beat the system, kindly furnish the evidence.

 

[Zorba]

I thought there was monetary limit on unemployment. Meaning a dollar per week level that an individual U.S. state would not dare to surpass.

There is also a limited period of time one could draw unemployment. I thought most states had it at 26 weeks.

So, how could anyone make more money on unemployment than they did when they were working? Your salary had to be pretty high to receive the top level.

If anyone on this forum knows of cases where individuals managed to beat the system, kindly furnish the evidence.

Under the cares act, unemployment benefits were enhanced. Setting the payment to be roughly the US median income and I believe it extended the number of weeks. So most people working service jobs got a pay raise on unemployment.