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Social and Behavioral Sciences Commons™
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Full-Text Articles in Social and Behavioral Sciences
Bursting The Auto Loan Bubble In The Wake Of Covid-19, Pamela Foohey
Bursting The Auto Loan Bubble In The Wake Of Covid-19, Pamela Foohey
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Before the COVID-19 pandemic, auto loans outstanding in the United States had soared to record highs. The boom in lending spanned new and used cars and traditional and subprime loans. With loan delinquencies also hitting new highs almost every quarter, predictions that the auto lending market could burst soon abounded. When the economy came to a grinding halt and unemployment skyrocketed in the wake of the pandemic, auto lenders knew they were facing a crisis. Throughout 2020, auto lenders granted more payment forbearances to consumers, while slashing interest rates on new loans. Auto manufacturers similarly made promises to buyers, such …
The Folly Of Credit As Pandemic Relief, Pamela Foohey, Dalie Jimenez, Christopher K. Odinet
The Folly Of Credit As Pandemic Relief, Pamela Foohey, Dalie Jimenez, Christopher K. Odinet
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Within weeks of the coronavirus pandemic appearing in the United States, the American economy came to a grinding halt. The unprecedented modern health crisis and the collapsing economy forced Congress to make a critical choice about how to help American families survive financially. Congress had two basic options. It could enact policies that provided direct and meaningful financial support to people, without the necessity of later repayment. Or it could pursue policies that temporarily relieved people from their financial obligations, but required that they eventually pay amounts subject to payment moratoria later.
In passing the CARES Act, Congress primarily chose …