Folks, easy money/ conusmer credit almost always moves consumption forward and robs from the future. Not the case with capital investment and capital accumulation however, which are the foundations of growth.
I posit the slow growth in the G5 is now experiencing, as posted in our last piece, is the result of too much consumer borrowing and thus pulling consumption forward.
Isn’t that exactly what is happening here to GM car sales now? The overhang of too much credit and the bursting of the subprime auto credit bubble?
Hat Tip to Wolf Richter Twitter.