Recently I was at the auction checking some of the last Lincoln Town cars we will ever see. I ended up buying a couple of them and unknowingly 2 of them were repossessions and both of the previous owners worked in the same housing fields. There are certain industries that will without a doubt collapse but not easily. These people are fighting for what they worked for for many years and doing whatever it takes to keep the companies alive. I commend them for that, I have been guilty of staying in companies that were clearly in the downward cycle and had no chance of revival, mostly due to the same corruption that pollutes this country so badly today.
Which industries are likely to collapse
It’s hard to say as so many are falling now. it is tough to find an American industry right now that is not being outsourced to a sweat shop in the East or a company that hedge funds don’t decide one morning to buy the market on. One thing is for certain, most people don’t think much about the future of their company growth or the industries health behind their company so when it does collapse and they are suddenly out of work, 6 months earlier they were thinking whether or not they should finance that car.
We are seeing a huge downward trend in the mortgage industry as inventory will not be increasing anytime soon and if they do they will simply be foreign cash deals. So you might see an extreme influx of mortgage brokers and sales associates cars in the short term. As the society went from simple to shallow, there will likely be no decline in retail brands in the meantime. Which means that even those on minimum wage will spend a large portion of their checks on the big brands that flood the outlet malls.
Many people in the healthcare industry are in deep as well and may not sustain much longer. The new trend is similar to the third world nations such as centra care clinics on every corner for cash and low grade hospitals for the new affordable care insurance. This cannot sustain unless we start bailing out the insurance companies at some point. This newly implemented care will likely close many more industries due to the strain of regulations and will leave lots of repossessions in its its tracks.
Restaurants have been closing left and right, so that industry is pretty much toast unless you have a dollar menu or a food truck. Middle class family restaurants no longer have 1/2-1 hour lines and tables are readily available. This cannot sustain and will likely be a problem, shutting down the companies that are behind these chains will hurt.
Will the repossession numbers be higher this coming year
As they are continually trying to feed us the improving economy crap, increase in job growth without speaking of how many part time jobs they were or how many people came off of unemployment that got taken out of the numbers. The repossession numbers may be slightly higher but nothing huge as the economy has never came out of this recession. A good economy is what creates loans and compulsive buying, toy buying and a bad economy means less repossessions. However, I do feel that as certain industries collapse there may be small surges improving in the repo fields.