TAKE CHRIS ADVICE NOW! I worked for citi bank back then, I just recently ” last few weeks” started warning my family and friends of a coming event like Chris is explaining! there 200 trillion in u.s credit card debt, 22 trillion u.s debt, car loans ARE MASSIVE, student loans in the billions if not trillions, housing is Almost doing the same exact thing right NOW as it did right before 2008 collapse!
Subprime Auto Bonds From 2015 May End Up Worst Ever, Fitch Says
Subprime auto bonds issued in 2015 are by one key measure on track to become the worst performing in the history of car-loan securitizations, according to Fitch Ratings.
This group of securities is experiencing cumulative net losses at a rate projected to reach 15 percent, which is higher even than for bonds in the 2007, Fitch analysts Hylton Heard and John Bella Jr. wrote in a report Thursday.
“The 2015 vintage has been prone to high loss severity from a weaker wholesale market and little-to-no equity in loan contracts at default due to extended-term lending, a trend which was not as apparent in the recessionary vintages,” said the analysts, referring to lenders’ stretching out repayment terms on subprime loans, sometimes to over six years, to lower borrowers’ monthly payment. That becomes riskier in the tail end of the loan, after the car has mostly depreciated and borrowers may be left owing large balances.
Global debt woes are building up to a tidal wave
UBS Has Some Very Bad News for the Global Economy
The global economy is set for a dramatic collapse some time in the second half.
U.S. Weeks Away from a Recession According to Latest Loan Data
We only note this, because next week the Fed plans to hike rates again. If it does so just as US loan growth contracts, it may be doing so smack in the middle of a recession.