The subprime auto loan bubble

[Tom Joad]

Originally Posted by mpholland

People these days don't learn to budget, or just budget for recurring expenses. They also don't learn how to live within their means. I am aware that there is a huge section of the population that can't, and.

This is true.

And it's one of the reasons why the 401 K plan isn't working.

The fact is a huge percentage of the population either can't, or won't save enough for retirement. That's why we need Social Security, and defined benefit plans like was the norm a generation ago.

[Pio1980]

Originally Posted by JJIII

The couple has enough to pay the outrageous price of renting tires but they didn't have enough to set back a little every month to buy the tires? There are no used tire stores in the area? There are no salvage yards in the area where they can cull good tires from wrecked cars?

We tried this used tire thing, used tires tend to go to states with weak environmental controls over their disposal and the quality can vary from usable to dangerous. Lacking upgrade pulls from new cars, Walmart is about the best cheap option for dependable tires.

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[Tom Joad]

Originally Posted by nailer

Regarding the nurse and prison guard. Is she an RN? Probably not. If the guard works for a private sector prison (outsourcing) his pay and benefits are significantly less than a civil servant prison guard.

I suspect that's true, She's probably more like a glorified orderly and I doubt his prison guard job is civil service.

Still, they are DINKS. (Double Income No Kids).

Seems like they ought to be doing better than having to rent tires. So they probably have a money management problem too.

[Tom Joad]

Originally Posted by Pio1980

We tried this used tire thing,

I tried used tires a couple of times back when I was hard up after a nasty Dayvorce. They were, without exception, pieces of shit.

[mpholland]

I get tires at Costco. Always Michelin. Just put new ones on the Corolla. Truck is about ready.

[Dondilion]

Originally Posted by Tom Joad

This is true.

And it's one of the reasons why the 401 K plan isn't working.

.

It is too accessible for a retirement plan.

It is more like a Christmas plan.

Anyhow it is good for a down payment on a house.

[Tom Joad]

Originally Posted by mpholland

I get tires at Costco. Always Michelin. Just put new ones on the Corolla. Truck is about ready.

I've been going to Tire Kingdom for a good 20 years.

Always had good experience with them.

They have lots of them in Florida, but now that I have moved the nearest one is 40 miles away. But I have a $600 set of Michelin's on my Accord, so I should be good for a while.

[Pio1980]

Originally Posted by Dondilion

It is too accessible for a retirement plan.

It is more like a Christmas plan.

Anyhow it is good for a down payment on a house.

If that. Not so much for folks on the paycheck-to-paycheck wage plan minus the payday loan/car title weasels. I absolutely refused to do that to folks when I had a pawn shop.

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[Tom Joad]

Originally Posted by Dondilion

It is too accessible for a retirement plan.

No shit.

I took a part time job back in the late 80's and early 90's when I was hard up after the Dayvorce. I did taxes for H&R Block.

Most of the clientele are lower income working class looking to get their refund back faster and willing to be gouged by H&R Block to do it.

H&R Block is basically a short term loan rip off outfit.

Anyway, I would say about 90%, at least 90% of the ones I saw, that had left a job the past year and had a 401K, had cashed that sucker in rather than roll it over.

[nailer]

Originally Posted by Tom Joad

I suspect that's true, She's probably more like a glorified orderly and I doubt his prison guard job is civil service.

Still, they are DINKS. (Double Income No Kids).

Seems like they ought to be doing better than having to live in a trailer and rent tires. So they probably have a money management problem too.

True enough, and a reason for this is that since being booted out of Eden most people haven't been able to effectively manage their money/assets.