Banks have gotten high on their own power. They realize they can compete in residential real estate and starve out the market by artificially decreasing supply and hiking prices. They know the US loves circle jerking (American) auto makers, and will funnel tax money to make them survive.
Banks will want in on the action and will back automakers to follow suit, cut supply/artificially decrease it, and increase prices (more than they are).
In that scenario 1 of 2 things happens, 1) we pay more cash for cars that are necessary for American life 2) we lease/finance ridiculous prices and the bank makes even more profit.
It’s win win for them to support auto industry and supply them with the real estate they’re holding on the side lines.
Conspiracy hat on.
Banks have gotten high on their own power. They realize they can compete in residential real estate and starve out the market by artificially decreasing supply and hiking prices. They know the US loves circle jerking (American) auto makers, and will funnel tax money to make them survive.
Banks will want in on the action and will back automakers to follow suit, cut supply/artificially decrease it, and increase prices (more than they are).
In that scenario 1 of 2 things happens, 1) we pay more cash for cars that are necessary for American life 2) we lease/finance ridiculous prices and the bank makes even more profit.
It’s win win for them to support auto industry and supply them with the real estate they’re holding on the side lines.