Rebel Capitalist News Used Car Market Is Crashing...Is This A Recession Warning?
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Sep 26, 2025 Dive into the shifting tides of the used car market and what CarMax's struggles reveal about the economy. Discover how rising interest rates impact everything from jobless claims to Bitcoin prices. Learn about Tricolor's bankruptcy and the warning signs of consumer stress. Unpack the relationship between dollar strength and U.S. interest rates while understanding the implications for those at the bottom of the economic ladder. This discussion offers valuable insights for anyone looking to navigate today's financial landscape.
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Growth Data Pushed Rates Up
- Stronger GDP and lower initial jobless claims pushed interest rates and growth expectations higher today.
- George Gammon warns short-term rate moves don't change his base case of a deteriorating economy.
CarMax Slide Signals Consumer Weakness
- CarMax plunged after reporting a challenging quarter and weak guidance, signaling consumer weakness in used cars.
- George treats the used-car market as a leading indicator for broader consumer health and economic stress.
Pull-Forward Demand Masks Weakness
- CEO commentary pointed to pull-forward demand and tariff-driven buying that left weaker demand afterward.
- George highlights that front-loaded purchases can mask underlying demand weakness in future periods.