Subprime chaos: The auto bubble’s bursting and its worse than 2008
“What’s interesting – and worrisome – is that consumers are defaulting on subprime auto loans when the economy is supposably doing ‘very well’. Like I wrote last week – there are cracks under the economy’s foundation. And it’s like a bucket of cold water in the face of the mainstream financial media that’s pushing the ‘growth’ story. We must ask ourselves – ‘if things are going so well, why are subprime loan delinquencies at a 22-year high?’”
MK note: Another bubble to worry about, though this one comes up repeatedly. . . .This article emphasizes the delinquency in subprime auto loans – not only a problem for the financial entities holding the notes, but an indicator of economic weakness as well. Meanwhile, the Fed seems oblivious to statistical renderings such as this and continues to talk up interest rate increases. Though Wall Street continues to talk up economic growth, Main Street continues to view such notions with a healthy dose of skepticism.