1/6: “I’m almost at capacity and we haven’t even begun to feel what is going to be probably one of the biggest shifts since 2008. … We’re going to blow past 2008 numbers as far as repossessions go.” – a repo company executive.
— Unicus (@UnicusResearch) June 1, 2024
3/6: The consumer may not bounce back so easily this time, and we could be headed into a prolonged period of reduced spending, especially for big-ticket items like cars, boats, and RVs.
— Unicus (@UnicusResearch) June 1, 2024
5/6: Which has led to lower tax refunds that are typically used for auto purchases. The result of this situation, where consumption growth continues despite flat disposable income, has been a downward trend in personal savings rates.
— Unicus (@UnicusResearch) June 1, 2024
6/6: Regional banks like $ALLY in auto loan, $OZK in CREs are kicking the can down the road and that is a deeper issue. According to an FRB paper, the borrowers who take out six- or seven-year loans face greater credit and liquidity constraints.
If you want to read more, click… pic.twitter.com/jJ22L0hwyG
— Unicus (@UnicusResearch) June 1, 2024