Next Subprime Crisis?

this would literally be the most retarded thing we've ever done

>>2116641
What?

>>2116629
>zero hedge

a stopped clock is right twice a day, but they're a digital clock with the power off

File: cucked.jpg (18KB, 335x335px) Image search: [Google]

18KB, 335x335px

>>2116659
Loan 107 million cars to people with high interest and overcharge them so much that they can't afford to pay it back

Out jewed themselves eh

>>2116676
I suppose, lol. I was trying to find some sources that are actually covering Auto Debt like it is a crisis (which it is) and I found ZeroHedge

>>2116712
lmao that's true. It really is sad how the cheaters of the system have to bring an economy to the brink in order to learn a lesson

>>2116629
I think you're a bit misled to what's right in front of you. In my opinion, ALL non-bank entities that behave like banks are in trouble. That means with the new Dodd Frank and Basel accord measures in place, every institution that now acts like a bank will be in danger of failure because they will panic in the next crisis.

One of the reasons is that everyone wants to give money away at extremely low rates right now. That means bloated corporate balance sheets, consumers spending money on expensive cars, skyhigh commercial property valuations, etc..

The next bubble won't be auto loans alone. The next bubble has to do with the fact that every company wants to be a bank after Dodd Frank.

Auto companies, insurance companies, investment banks, retailers, etc.. all lending money at very very cheap. Given the leverage of some of these industries and corporate debt in general, it's going to be a shitshow once a credit contraction comes and these pseudolenders don't know what to do.

File: theprophet.jpg (481KB, 1440x2560px) Image search: [Google]

481KB, 1440x2560px

>>2116716
Here is some commentary by people involved in sports and luxury cars:
https://www.youtube.com/watch?v=gUtP13XpgVQ#t=36m16sv=gUtP13XpgVQ#t=40m26s

>>2116629
>"Subprime auto loans packaged into securities"

That sounds like a great idea. What could possibly go wrong?

>>2116629

canadian housing bursts first after china added friction to capital outfloe in january

also why crypto pump continue

>>2116629
Bitcoin bubble bursts, taking down the banking sector with it. They announce years after this crisis that they were highly leveraged in ltc

>you can strategically default on your car loan unless you're living out of your rolls royce phantom

I mean are people really going to destroy their credit because they are underwater on a car loan?

>>2116629
>6 million are behind on their payments
Nobody gives a shit, goy. A bunch of cars will get repo'd some bankers will take a debt haircut and the industry will move on. 6 million x 10K each is $60 Billion. During the 2008 crisis there were 7.5 million subprime mortgages in first time lien. At ~$200K each that's $1.5 Trillion.

>>2117755

Yes. It happens every single day.

>>2116629
You should be more worried about student loans famalam

>>2116629
Yeah but I don't see it taking the whole economy with it. These aren't government backed so it's not quite apples to apples. In the long run it's probably a good thing. There's nothing more degenerate than people who own a car with a sticker price that's twice their annual income

>>2118056
Why? A person can't default on student loans for the most part

>>2118056

This. People are getting away with taking out 100k just to go to school with no way of paying it back.

>>2118056

I think you're right.

>>2116629

You're a fucking retard and you're wrong.

Look at this data: https://www.newyorkfed.org/medialibrary/interactives/householdcredit/data/pdf/HHDC_2016Q3.pdf

>>2116629
Zerohedge has covered this extensively

http://www.zerohedge.com/news/2017-05-13/other-shoe-drops-prime-auto-loans-losses-surge-recoveries-tumble

Could lead to a 50% drop in used car prices.

>>2116676
the sources it cites are legit though

>>2118535
>https://www.newyorkfed.org/medialibrary/interactives/householdcredit/data/pdf/HHDC_2016Q3.pdf
I don't see how he is too far off. The fed is saying 90+ days maybe his data is saying 60 or something? Either way it's overblown.

File: 1407545351316.png (75KB, 458x284px) Image search: [Google]

75KB, 458x284px

>>2117752

kek

>>2118571
I think they will drop but people want new cars. They are turning into tech products. Especially if you have a state/country with a carbon tax.

Is there anything more pathetic than spastic normies driving around in their big SUV debtmobiles?

>>2118571
I was waiting for someone to point this out, just means cheaper wheels to me. I hope these idiots get their cars repo'ed, I'll scoop up the good ones at a huge discount

>>2117836
>10k
You're out of touch with how much cars cost now grandpa.

>>2118490
The issue is that the auto industry needed a bailout last time because of far smaller problems. This time it may just kill off what remains of American auto manufacturing.

>>2118705
>This time it may just kill off what remains of American auto manufacturing.

That would make me sad for nostalgic reasons. On the other hand, in the new world order, controlling information flow is the new manufacturing. Wealth is accumulating with the technical elite. This is all good, I think, but we will have to find something for all of the dumb people to do or it could get ugly.

>>2118705
How do you figure?

A lot of the financing is done by outside banks first off. Even with in house (a GMAC or Ford Motor Credit for example); they still have underlying collateral to sell off. Plus it's not as if the whole house of cards will fall at once. To compare it to a sub-prime mortgage type crisis, where you had the teaser rates being raised over and over to the point of default is not the case here.

Unless we have some other major catalyst to set it off in a similar way, I don't see it being nearly as bad as people are speculating.

>>2118589

It just proves that OP is a faggot.