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Hugging the Bottom Hair of the Dog That Bit Us

The following chart shows motor vehicle loans as a percentage of annual wage and salary accruals.


Click to enlarge.

How much debt is too much? We'll find out someday if we keep hugging the bottom of that trend channel.

October 28, 2013
More new-car buyers opt for 7-year loans

More new-car buyers are stretching out their loan payments as long as possible — as many as seven years — and experts wonder if the trend is another financial time bomb.

Source Data:
FRB: Historical Motor Vehicle Loans
St. Louis Fed: Compensation of Employees: Wages & Salary Accruals

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