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Tag Archives: auto loans

Is the Auto Loan Bubble Nearing Its Popping Point?

How much more can the auto loan bubble blow up before it pops?Total auto loans and leases outstanding for new and used vehicles increased by another 4.3% year-on-year in the third quarter, according to the latest data from the Federal Reserve. This was a factor in pushing total American consumer debt to a new record of $4.15 trillion in September.Meanwhile, auto loan delinquencies are surging.Vehicle loans and leases outstanding have soared to a record of $1.19 trillion. Since Q3 2009,...

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Trump Meets With Powell & Mnuchin…

A Pfennig For Your Thoughts November 19, 2019 * Currencies hold Friday’s gains, and inch higher* Gold makes a come back on Monday! Good day… And a Tom Terrific Tuesday to you! I wrote so much yesterday morning that I had to take a long nap to recover! HA! And now I don’t have a thing to talk about today! And if you believe that then I’ve got some land I’ll sell you, don’t worry about the reports of it being swamp land! The bad thing about what I have to say, is that it all makes me out to be...

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Auto Loan Delinquencies Approaching Great Recession Peak

Auto loan delinquencies have surged to the highest level since 2011 and are approaching levels seen at their peak during the Great Recession.The percentage of outstanding auto loans in serious delinquency (90 days or more past due) jumped to 4.69% in the first quarter of 2019, according to the latest data from the New York Fed. At their peak during the recession, auto loan delinquencies hit 5.27%. The total amount of delinquent auto loans totals about $60 billion. In dollar terms, the...

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The Credit Risks Hiding Behind the Averages (Video)

As we reported last week, consumer debt continues to break records month after month. Americans owe over $4.3 trillion dollars in revolving debt (primarily credit cards), student loans and auto loans. When you factor in mortgages, the number climbs to $13.54 trillion. That figure was $869 billion higher than the previous peak of $12.68 trillion in the third quarter of 2008 (right before the crash) and 21.4% above the post-financial-crisis trough reached in the second quarter of 2013.But...

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What’s Behind the Subprime Auto Loan Fiasco? (Video)

As we reported last week, a record 7 million Americans have fallen 90 days or more behind on their auto loan payments. That’s 1 million more than the previous peak in auto loan delinquencies in 2010. But as points out, there is a big difference between then and now.Serious auto-loan delinquencies are now on par with Q2 2009 when millions of people had lost their jobs and when the economy was in free-fall. But today unemployment is low and the economy appears to be humming. What gives?...

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A Record Number of Americans Are Delinquent on Their Car Payments

A record number of Americans have fallen behind on their car payments.On Tuesday, the New York Federal Reserve released its Household Debt and Credit report covering the fourth quarter of 2018. Not only has indebtedness hit record highs, eclipsing levels seen on the eve of the Great Recession, but Americans are also having a harder time paying their bills. This is particularly apparent in the US auto market. According to the New York Fed report, more than 7 million Americans have fallen at...

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Subprime Arrives: Auto-Loan Delinquencies Spike to Great Recession Levels

“A development that is surprising during a strong economy and labor market”: New York Fed Serious auto-loan delinquencies – loans that are 90 days or more past due – surged to 4.47% of total auto loan balances in Q4 2018, according to New York Fed data this morning. This put the auto-loan delinquency rate at the highest level since Q1 2012 and just 0.6 percentage points below the peak during the Great Recession in Q1 2011. At the end of 2018, there were over 7 million Americans with...

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Ron Paul: Everything Is Subprime Thanks to the Federal Reserve (Video)

Ron Paul talked about bubbles during his Liberty Report last week, noting our articles on the subprime auto bubble, along with housing bubble 2.0.As Ron pointed out, it’s hard to keep up with all of the distortions in the marketplace thanks to a decade of Federal Reserve easy money.How do you cover all the bubbles? The nature of what the Fed does by manipulating interest rates to lower than the market rate, everything has to be affected to some degree by a bubble and a distortion and a...

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Expectations vs. Reality: SchiffGold Friday Gold Wrap 04.13.18

The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s precious metals news coupled with thoughtful analysis. You can subscribe to the podcast on iTunes.The mainstream keeps talking up the economy and trying to boost expectations. But at some point, expectations are going to crash head-first into economic reality. There are already warning signs. In this episode of the SchiffGold Friday Gold Wrap, host Mike Maharrey talks about two of them – a...

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Has the Subprime Auto Bubble Burst?

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 noted, “we all know what comes next: the larger companies go bust, inciting real capitulation.” recently reported that not only are subprime auto lenders facing tough business conditions, there are also...

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