Independent thinking for complex markets and current events
Tweet: NEWS: Auto loan delinquencies keep climbing Subprime delinquencies (FICO: 580–669) jumped 26 basis points to 5.17% in Aug. Even prime loans (660–719) saw a slight uptick to 0.50% overdue. The reason? Consumers with auto loans originated in the past two years are falling further behind as elevated interest rates and vehicle prices squeeze household …
Borrowing in JPY, exchanging for USD (unhedged), buying US equities now they need to buy a rising JPY to cover their new obligations, and to get it they need to sell those equities. h/t _amc_
As ominous signs of economic distress emerge, the US teeters on the brink of a financial precipice. Subprime auto loan delinquencies soar to 2008 levels, signaling an impending crisis fueled by a doubling of delinquency rates in just three years. Simultaneously, the housing market grapples with a catastrophic collapse, with mortgage demand plummeting to its …
by confoundedinterest17 We are living in the USA where corruption, favoritism, open borders and an out-of-control Federal budget and debt are destroying this once great nation. Former Kansas City Fed President Thomas M. Hoenig was absolutely right when he said recently that The Federal Reserve panders to Wall Street, Congress and special interest groups, prioritizing immediate relief over …
by confoundedinterest17 In statistics we talk about “jump processes.” Like Federal government spending every time there is a financial crisis like the subprime crisis of 2008-2009 and the Covid lockdowns of 2020. Each crisis brought a jump in the level of spending and jump in Federal debt. Federal debt under Biden started at $27.7 trillion and is …
How about that “strong” retail sales data… pic.twitter.com/kzrjb4ZvdI — Amy Nixon (@texasrunnerDFW) December 14, 2023 I mean, what are they going to do? Repossess the empty bag of Doritos you ate months ago? As far as subprime loans go, these are the worst possible imaginable ones for banks. What’s the collateral? At least in 2008 …
Remember when they told you that it was subprime borrowers that caused the 2008 housing crisis? They lied https://t.co/8MmwYOoN70 pic.twitter.com/UO2J54qSEJ — Darth Powell (@VladTheInflator) November 5, 2023
Subprime is a fancy word for sh*t credit score. h/t Mayhem4Markets
The record-high subprime auto loan delinquency rate in September is deeply concerning, but it’s not just about the car market. The ripple effects extend to people struggling with their bills, families losing their means of transportation, and the broader economy. Many people have asked me to why I haven’t commented on the concerning auto loan …
by Michael It is happening again. All over America, borrowers are getting behind on their payments. In particular, subprime borrowers are having a very difficult time paying the bills. Does that ring a bell? That should, because the last time we witnessed anything like this was during the last financial crisis. When things start to …
As Americans grapple with average monthly payments of $500 for student loans and $740 for new cars, resulting in the average American spending a staggering $1,240 each month just to finance a car and manage student debt, with delinquency rates expected to keep climbing. Meanwhile, the median homebuyer is spending $2,900 on monthly home payments. …
On Friday’s broadcast of the Fox Business Network’s “Maria Bartiromo’s Wall Street,” Select Committee on the Chinese Communist Party Chairman Rep. Mike Gallagher (R-WI) argued that there are “startling parallels” between the investments in subprime mortgages in 2008 and American investments in China and argued that businesses are not sufficiently disclosing or factoring in the …
Automotive Credit Corp, a subprime lender, has begun cutting off select car dealers due to “ongoing concerns regarding adverse market conditions” This is exhausting — Car Dealership Guy (@GuyDealership) July 6, 2023 Serious Auto Loan Delinquency among people under the age of 30 is approaching Global Financial Crisis levels pic.twitter.com/gUIWILJ1sQ — Barchart (@Barchart) May 31, …