In August 2016, Last Week Tonight’s John Oliver reported on the startling similarities between the current subprime auto-loan market and the 2008 mortgage crisis. As is often the case whenever Oliver comes out with a new piece of journalism, the internet responds with numerous articles on his report. While oftentimes the media generally sides with Oliver’s perspective, this recent report has been met with both praise and harsh criticism. Below we’ve linked 5 articles or videos discussing the potential fear of another crisis and whether or not we should be worried.
There are a few reasons this video is the perfect place to start. John Oliver does a great job of blending comedy and journalism to keep the audience engaged while still getting to the point. He makes a compelling argument as he compares 2008’s crisis to what is happening in 2016.
Shortly after Oliver’s report, Forbes contributor and journalist Tim Worstall argued that Oliver’s report was erroneous on a few fronts. He argues, among other things, that the auto-loan industry is far too small to have anywhere near the impact the housing market had in 2008.
In this Wall Street Journal article from earlier this year, JP Morgan Chief Executive Jamie Dimon gives his reasons as to why the auto-loan market could cause major problems for the economy.
Written by Claudia Assis and Rachel Koning Beals, this fantastic and in-depth article employs a wealth of information to prove we are not in danger of another economic crisis. The Marketwatch writers call out Jamie Dimon and John Oliver specifically by name, which makes this article all the more compelling.
Regardless of whether you believe the subprime auto-loan bubble will burst, John M. Vincent’s post on U.S. News and World Report describes why all consumers should avoid these loans at all costs.
As is evident from reading these articles there is no real consensus as to the future of the subprime auto-loan market. Regardless of your particular belief, as a small business owner, it is important to make sure you and your employees are at least aware that this could potentially be an issue.