Bloomberg Press just published an article claiming “Americans Are Prioritizing Phone Payments Over Car Loans.” The article says, “As cars grow relatively less important, borrowers struggling to pay back their loans on time are increasingly prioritizing payments on the latest iPhone instead of making sure they hold on to their pickup or coupe.”
“So what?” You might say . . . and rightfully so.
The reason Bloomberg was interested in this phenomenon is investments. In particular, good old derivatives. Remember them? Those unsecured, gambling vehicles that were used to bankrupt the entire world economy in 2007? Yeah, that’s the way we’re going to look at the future of motorcycling, cars, and cell phones. “The shift is increasing the attractiveness of bonds generated from mobile-phone loans, a small but growing portion of the asset-backed securities market. While just $7.7 billion of bonds backed by phone purchases have been issued since 2016 — and all by Verizon Communications Inc. — the number may increase over coming years.”
So, not only are Americans more interested in staring at their tiny screens, tapping away with their thumbs at the speed of mentally deficient secretaries, and double-checking their “likes” while walking into traffic without a clue or a care in the world. And they are walking because their car has been repossessed and they probably didn’t even notice.
If that’s the direction we’re going, you damn well better get whatever you can get out of your vintage bikes while you can. In another generation, you’ll be selling those wheels for scrap metal prices.
