Josh Sigurdson sits down with author and economic analyst John Sneisen to talk about the massive bubble burst creeping closer and closer in the auto industry following the biggest subprime auto lender Santander (being dubbed the New Century of auto finance) skipping income verification on 92% of auto loans.
We are watching the type of manipulation we’ve been warning about in the housing market. The same type of manipulation we saw just before the 2008 recession.
Instead of mortgage backed securities (MBS) we are seeing auto backed securities (ABS) on an aggressive level.
Santander’s ABS deals from 2015 sported an average FICO (or credit rating) of 595, LTV of 110%, APR of 16.2% and a term of 70 months. This is actually worse than New Century!
Santander as reported is the largest subprime auto lender in the country with more than $15 billion in outstanding loans to under-qualified buyers.
As we continuously call out the vast manipulation and central planning in both the markets and monetary system, people continue to turn their heads and pretend nothing’s happening and that everything’s okay. We are continuously vindicated but all the same, no one seems to care.
This market manipulation and destruction affects everyone eventually and it’s incredibly important we call it by its true name. It’s a PURGE of the markets, free of actual free market demand or decisions. It’s centrally planned and built to fail. People end up in debt servitude and the script plays on.
The sooner we understand these inherent problems, the sooner we get out of the Hegelian nature of problem, reaction, solution, repeat and instead protect ourselves via voluntary interactions between free individuals. Market manipulation is put forward to fix the problems when it creates the problems in the first place.
Be self dependent and responsible and deny the social constructs of these massive failure.
Stay tuned as we continue to break this down!
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