Josh Sigurdson talks with author and economic analyst John Sneisen about the continued crash of the auto industry and GM plans 4,000 layoffs this week. This will affect several factories in North America.
Now, we aren’t here to blame Trump because this was going to happen one way or another, but the jobs numbers are false. They are hidden within the labor force participation rate numbers. The fact is, the markets have reached their peak debt levels and they cannot sustain themselves anymore. We can thank vast centralization.
We can also blame dependence on these crazy auto loans. The auto backed securities for example are a major part of this puzzle much like the collateralized debt obligations are a big part of the housing bubble.
We warned of this pending problem years ago and it’s not surprising to see this start to take place in 2019 as people start to acknowledge that the markets are based on investor confidence and not necessarily fundamental value. History doesn’t repeat but it sure does rhyme.
John explains why this is happening and what we can expect as many factories close their doors due to vast bank and government interference as well as the financialization of the markets.