The US banking system works from a top down flow of cash: Example:Fed prints it--->"lends" it to 5 big Wall Street banks at 1/2%--> they lend it to big commercial banks at 1% --> they lend it to big regional banks at 1.5% --> they lend it to local banks at 2.0% --> they lend it to small credit unions at 2.5% --> they lend ot to you at 3.0%.
If Fed specifies that money can't be lent for internal combustion vehicles, there will be no loan money for gas cars, anywhere.
(this is an oversimplification, but the effect can be created exactly as described.)
You have a point. Though, there are always a way around any system. Bartering is still a major thing in large parts of the US at least and most don't want/need a "new" car. The companies will go bust long before the people looking for a way to get around will.
This is how they're going to do it: Deny loans for internal combustion vehicles and FORCE people to buy electric because they won't be able to get a loan for any internal combustion vehicle. If the Fed announces that they will ONLY repurchase loans for "green" vehicles, banks will simply quit giving loans for internal combustion vehicles. (local banks long ago quit holding the notes for most consumer loans...they resell the loans to larger entities to avoid the risk of default.) Fed controls the money supply AND THE LOAN SUPPLY by selectively repurchasing only particular kinds of loans. That is how the housing loan crisis of 2008 happened. Fed just kept buying any loan for any house...so banks had no incentive to manage risk....they just gave away money because the Fed was going to be the final holder of the loan.
This explains why big car companies are suddenly committing to all electric fleets by 2030: The FED has told them that there will be a moratorium on ICE loans by then. If they're still building ICE cars by then, nobody will be ableto geta loan to buy them.
If they stop mass producing ICE cars, they will stop producing parts for ICE cars as well. We'll be entering Mad Max world then.
There’s always home equity or personal loans if you qualify.
(post is archived)