by Wolf Richter
“Extend and pretend” works wonders for a little while. But with auto loans, it gets dicey in a hurry. And then what?
Nearly all current or former taxpayers below certain income levels received the $1,200 stimulus payment. For a couple, it came to $2,400. If they had kids, more money was added. These moneys arrived in bank accounts in April, May, and June. In addition, there are currently over 32 million people who claim unemployment benefits under state and federal programs. They not only get their regular unemployment benefits but also the extra $600 a week in federal funds. For many laid-off workers, this adds up to more than their wages. This money has been a godsend to people who were behind on their subprime-rated auto loans.