Pop Goes the Subprime Auto Loan Bubble
It looks like the subprime auto loan bubble has popped. Last year, we reported that the auto industry’s check engine light was on. Now it looks like the thing is totally breaking down. Small subprime auto lenders are starting to go belly-up due to increasing losses and defaults. As ZeroHedgenoted, “we all know what comes next: the larger companies go bust, inciting real capitulation.” Bloomberg recently reported that not only are subprime auto lenders facing tough business conditions, there are also allegations of fraud and under-reporting of losses. Growing numbers of small subprime auto lenders are closing or shutting down after loan losses and slim … Continue reading →
The post Pop Goes the Subprime Auto Loan Bubble appeared first on LewRockwell.