what am I missing here?

[aix_xpert]

If you were a car company why wouldn't you? The govt has proven it will step in and make taxpayers foot the bill for your bad business.

How does this put the car dealer on the hook? At the end of the day, if you file bankruptcy or default, its the lender, not the dealer, who is the loser. Unfortunately, as we've shown, the lenders will be bailed out for making bad loans. Even more unfortunate is that they probably should be bailed out because the government will sue them for discrimination should they choose to not lend to the credit unworthy.

 

[Ostatedchi]

There won't be a bubble unless interest rates increase to a degree that people have other investment vehicles other than the stock market. That or if the economy tanks and people need to liquidate quickly.

 

[aix_xpert]

There won't be a bubble unless interest rates increase to a degree that people have other investment vehicles other than the stock market. That or if the economy tanks and people need to liquidate quickly.

Agreed. I'd argue that if the economy started to sputter, due to point one, you'd see more stock rotations (back to value/dividend plays) that outright liquidations. So even then the market itself may not get hammered.