Pop Goes the Car Bubble

Almost every negative thing happening in the car business – in particular, ludicrous technical complexity for the sake of electronic gimmickry and also to cope with diminishing returns federal “safety” and emissions mandates – could be gotten under control by the simple expedient of cutting off the monopoly money/debt-financing that makes it all possible.

The seven-year loan.

“Free” money (zero or very low interest).

Give-away leases.

The car industry is riding a bubble that’s proportionately...