+ auto loans + home equity loans. Many, many people will max out the house they can afford and pile 2 car loans on top of that. That right there can be 40-50%

+ auto loans + home equity loans. Many, many people will max out the house they can afford and pile 2 car loans on top of that. That right there can be 40-50% pre tax income. We now have a public with only a fuzzy memory of what a real recession looks like. Thanks to the accommodative Fed over the last ~14 years and more recent COVID free money bonanza, people have been rewarded for blindly taking risk and conditioned to think that prices always go up. A severe contraction with a jump in unemployment and no Fed bailout seems quite possible and might be a painful lesson for the overextended.