Grand Rapids, MI -- (ReleaseWire) -- 09/26/2013 -- The current economy in the U.S. can be hard to follow. Dennis Tubbergen is a financial advisor, author, radio show host and CEO of PLP Advisors, LLC and can be turned to when you need a little help understanding the latest economic happenings in the U.S.
Whether people enjoy his monthly newsletter Trend Courier or his blog at http://www.dennistubbergen.com, Tubbergen is devoted to breaking down current financial events so everyone can understand them. On September 27, 2013 his blog was titled Seems Like We'd Be Smarter Than This - Two Debt Bubbles Close to Bursting.
"When taking a look at debt levels and for what the money has been used, you might be surprised to learn a couple of things," began Tubbergen. "First, auto loan debt is at the highest level since 2007.
Below he quotes from the September 11, 2013 article in Profit Confidential.
Automakers in the U.S. economy are getting a significant amount of attention these days because they are selling more cars. In August, total light vehicle sales by the automakers in the U.S. economy increased 17% from a year ago. They sold more than 1.5 million cars in August compared to 1.28 million cars last August. (Source: Motor Intelligence, last accessed September 10, 2013.)
On the surface, sales reported by the automakers are exuberant. They show consumers are spending. And if this continues, maybe we will see some economic growth in the U.S. economy.
Sadly, this is a one-sided conclusion. When I look into the details, it turns out Americans are indeed buying cars from automakers—but on borrowed money.
Here’s what you really need to know other than just focusing on the sales by automakers:
Since the Federal Reserve introduced its easy monetary policies, there has been a significant increase in auto loans to the subprime borrowers—those with a low credit score of less than 620—compared to the prime borrowers—those with a credit score of 760 and above. (Reminds me of the housing crisis we saw in the U.S. economy not too long ago.)
And auto loans continue to climb. To read more about this fast-paced road to possible disaster and find out what the second bubble is, read Tubbergen's blog in its entirety by going to http://www.dennistubbergen.com and select his September 27, 2013 entry.
Tubbergen’s syndicated radio show can be heard on metro Michigan stations WTKG 1230 AM and WOOD Newsradio1300 AM and 106.9 FM. To listen to his shows as podcasts go to http://www.everythingfinancialradio.com
About Dennis Tubbergen
Dennis Tubbergen has been in the financial industry for over 25 years and has his corporate offices in Grand Rapids, Michigan. Tubbergen is CEO of PLP Advisors, LLC and has an online blog that can be read at http://www.dennistubbergen.com.
The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Therefore, no forecast should be construed as a guarantee. Prior to making any investment decision, individuals should consult a professional to determine the risks, costs, benefits and fees associated with a particular investment. Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.