Sign "O" the Times

government-motors

Here we go again:

Borrowers with shaky credit histories? A rush to fill out paperwork to facilitate loans for them? Bundling pools of those loans and selling them to investors? No, this is not the sub-prime mortgage crisis of 2008. This is the sub-prime auto loan business of 2014. Since 2009, total auto loan securitizations have surged 150 percent, to $17.6 billion last year. And the securities contain loans made to consumers with sub-prime credit.

Now the other shoe may have dropped. Credit reporting service Experian reveals that delinquencies and repossessions are rising, primarily driven by borrowers who would be classified as subprime and deep subprime. While Experian says this uptick is to be expected as the industry sells more vehicles, some are already saying a bubble in subprime auto loans may already be here.

Advertisement

The broke will be forced to bail out the incompetent for lending to the insolvent — again.

Recommended

Trending on PJ Media Videos

Join the conversation as a VIP Member

Advertisement
Advertisement