Evening Must-Read: Cardiff Garcia: One Reason US Autos Have Bounced Back Faster than Housing

Cardiff Garcia: One reason the US auto market has bounced back faster than housing: “It’s only one of several reasons, of course…

…as housing is a much bigger source of wealth and collateral for households and was obviously devastated in the crisis (hurting the middle class and poorest Americans the hardest). But the simple point here is that both of these markets have had some favourable underlying demand-side pressures building in the last few years…. Access to car loans has been relatively less constrained than access to single-family mortgages, which is part of the explanation… for why auto sales have recovered like this… while single-family home sales have looked like this: