Car sales are bad news

The worst recessions in history have all followed excessive investment in housing, personal transportation and the stock market. Today, the US is hitting two out of three. Take a look at the auto sales graph below. US sales have reached pre-recession levels.

You can see one of the reasons for the high sales volume in the next chart. Interest rates on auto loans are lower today than during the crisis. Auto loans seem to have replaced lagging real estate loans for banks.