Is Four-Wheel Debt the Next Financial Crisis?

Is Four-Wheel Debt the Next Financial Crisis?

Assessment

Interactive Video

Business

University

Hard

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The video discusses the types of debt Americans owe, highlighting the increase in credit card and subprime automobile debt. It examines the creditworthiness of different debt forms, noting that subprime loans are primarily from car companies. The video emphasizes the impact of these loans on car companies, suggesting that they will be the first to feel the effects when loans go bad. This is more of an investing story for the auto industry rather than a macroeconomic risk.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

Why are subprime loans primarily coming from car companies?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What implications do rising subprime loans have for the auto industry?

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