via Wolf Richter
Wolf Richter with Chris Martenson on Peak Prosperity’s Featured Voices, discussing the various aspects of the “Everything Bubble,” the “Bubble Mentality,” what it has wrought, and where it is headed.
The “Everything Bubble” has a number of side effects, including booming lending by specialized lenders, some of them backed by private equity firms, to car buyers with subprime credit ratings, which worked fine for years. But now subprime auto-loan delinquencies have surged to the highest rate since October 1996, and three of the smaller specialized lenders just collapsed into bankruptcy or were shut down. Allegations of fraud and misrepresentations are swirling through the bankruptcy filings. Read… Subprime Carmageddon: Specialized Lenders Begin to Collapse