In this video, I talk with author and economic analyst John Sneisen about the recent drastic drop in gas demand as people decide simply to stay home and not drive. Many are calling this "carmageddon" and it's taking a massive toll on the markets.
This follows the crazy car derivatives market continuing to grow in size and scope with auto backed securities being issued.
As John says, the demand for borrowing money was skyrocketing through the roof and they were pushing all these loans so the banks could make more money. Now we've hit the peak and it's going down hill fast.
When the derivatives are issued, that's one of the final signs of a massive bubble ready to burst. They're trying to squeeze the last pennies out of these investments.
During the peak driving season when people are on vacation, the gas demand is down 6% in the United States.
New record high levels on the stock exchanges (the Trump euphoria) is a large part of this too. The price earnings ratios are at record highs. Trump can only on a minor scale fix the markets. He cannot change the markets entirely or the monetary system. The downfall was in route far before he was president. Unless he's going to end the Federal Reserve or cut every single regulation and tax and just end the state, this calamity is going to happen. It's not Trump's fault, but it's also something that Trump simply can't solve.
Bubbles are inflating from all angles and it's time to start taking serious notice or else face the consequences.
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Gas over here is $.25 - $.45 more expensive than the national average (PER GAL), across the country where my brother live it's $.95 cheaper (PER GAL). It's cost of living mostly I guess.
I drive a hummer :) LOL
You can also see the last attempts of ice manufacturers to stay relevant with their hybrid offerings. When the demand for oil drops 10%, the price drops much, much more. It's a unelastic market where small changes in supply or demand has huge impact on the price.
The End of Suburbia 52 minute documentary on peal oil.
The End of Suburbia: Oil Depletion and the Collapse of The American Dream is a 2004 documentary film concerning peak oil and its implications for the suburban lifestyle, written and directed by Toronto-based filmmaker Gregory Greene.
So many gas stations are closing, been seeing that a lot in recent years.
More like Karmageddon...:)
I agree, it's carmageddon. There is massive debt in the auto loans outstanding. Analysis indicate there's as much as $1Trillion dollars in auto loan debt in US alone. Just overwhelming numbers.
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You probably need year on year figures, however, point is made that North America is doing it tough. I have heard stories of people buying 2 year old ex lease vehicles for bargain prices and car parks of closed shopping malls being filled up with unsold new cars from the factory.
I am interested in the inflation deflation debate. The high levels of debt and bubbles bursting should be deflationary. People clam that Yellen cant reach the inflation target.A breakdown of inflation, food, asset, energy, rent would be valuable although hard to get I expect. Household disposable income updates would also be useful. I expect this is falling. How muck of household disposable income is welfare, food stamps, rent subsidies etc. JSNIP4 comments on how some of his neighbors have high levels of rent subsidies.
I enjoy your videos they are very informative and will look into the book.
you are doing a good job covering the fundamentals as well =) thank you
An excellent report - this is the kind of stuff I want to see in my feed, followed. BTW it really bums me out to see you get under 10 $ for this kind of content.
out of control sub prime car loans that is whats driving this, pun intended
I don't believe in any statistics from the government. Here in Houston and east Texas the roads are busy from6 AM to PM. The Katy freeway is 8 lanes and almost always packed. This is just observation and localized but I don't see reduced driving.
Gas in So-Cal where I live is over $3 for regular.