Commodity Trade Mantra

Posts Tagged ‘Subprime Auto Loans’

Don't Look Now, But The Subprime Auto Bubble May Be Bursting

Losses on car loans taken out by bad-credit borrowers are continuing to climb, thanks in part to the flood of rookie auto finance companies that have entered the market in recent years. You can see the rise in subprime auto borrowers struggling to make car payments in monthly data on bond deals sold on Wall Street.

A Major Cause of the Financial Crisis is Coming Back

One of the biggest causes of the financial crisis is back. Lenders aren’t giving people subprime loans to buy houses anymore. They’re lending to people to buy cars & to buy stuff on their credit cards. If a big financial institution takes a big risk and it pays off, it keeps the profit. If it takes a big risk and blows up the financial system, the government will bail it out…like it did in 2008.

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