It’s interesting and disheartening that, so far, many of the comments focus on the bait instead of the hook. The cars, while important to the scheme, are not the main thrust of the article, IMHO. what is really important is that this has similar aspects to the subprime mortgage fiasco. In that case, the securitization of the subprime mortgages led to huge numbers of faulty loans being packaged and sold as AAA securities to private investors, investment houses and pension plans. And when the mortgages defaulted in mass numbers, which was pretty much inevitable, the security holders took a bath as did some of the brokerages that sold them. The ones who bet against their own product, Goldman Sachs for one, came out on top.
Hightower seems to be saying that this is a similar situation that could result in similar financial dislocations. It’s not about the cars, it’s the securitization of bad loans that he sees similar to the previous financial collapse and is something he considers rather worrying. Not sure why the discussion has focussed on, what to me is a distraction, the cars rather than this important issue.