Huge bankruptcies for used car firms have exposed Wall Street’s entanglement with the sector. Far from derisking after the Great Recession, banks rebuilt the economy on obscure financial intermediaries that are now sinking.
In Germany, new middle-range cars are just too expensive. So what happens is that companies get tax rebates if they give cars to employees instead of taxed salary, and these cars are sold a bit later on the used car market. This now covers around half of the market for more expensive cars, which covers maybe half of their running costs, and is nothing else than a government subsidy for the car industry - without that, they simply would sell less, and at a lower price. But there is never enough money for decent public transport or safe cycle paths.
Completely insane. It’s like listening to an indebted crack or cocaine addict rationalizing why he needs to spend all his money on the drug.
In Germany, new middle-range cars are just too expensive. So what happens is that companies get tax rebates if they give cars to employees instead of taxed salary, and these cars are sold a bit later on the used car market. This now covers around half of the market for more expensive cars, which covers maybe half of their running costs, and is nothing else than a government subsidy for the car industry - without that, they simply would sell less, and at a lower price. But there is never enough money for decent public transport or safe cycle paths.
Completely insane. It’s like listening to an indebted crack or cocaine addict rationalizing why he needs to spend all his money on the drug.