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FSN: Here They Go Again – Subprime Delinquencies Rising In Autoland
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
by David Stockman
David Stockman’s Contra Corner
Yesterday’s WSJ article on rising auto loan delinquencies had a familiar ring. It focused on sub-prime borrowers who were missing payments within a few months of the vehicle purchase. Needless to say, that’s exactly the manner in which early signs of the subprime mortgage crisis appeared in late 2006 and early 2007.
More than 8.4% of borrowers with weak credit scores who took out loans in the first quarter of 2014 had missed payments by November, according to the Moody’s analysis of Equifax credit-reporting data. That was the highest level since 2008, when early delinquencies for subprime borrowers rose above 9%.
To be sure, subprime auto will never have the sweeping impact that came from the mortgage crisis. The entire auto loan market is less than $1 trillion compared to a mortgage market of more than $10 trillion at the time of the crisis.
Continue Reading at DavidStockmansContraCorner.com…
Source: http://silveristhenew.com/2015/01/10/here-they-go-again-subprime-delinquencies-rising-in-autoland/
