Bread and Circuses – US Households Increase Debt in Wealth Destroying Areas: Mortgage Debt Holds Steady since 2008 while Debt in Auto Loans, Student Loans, and Credit Cards Reach Record Levels.
Americans for the most part generate their wealth via owning homes. Yet many younger Americans are having a tough time buying a home because of a crowding out effect from investors largely from Wall Street. I’ll start this post with some telling data: In 2008 US households had about $10 trillion in mortgage debt. Today […]
Subprime Auto Nation: American Households now Carry $1.34 Trillion in Auto Loans on an Asset that Depreciates While Covid-19 Creates Demand Destruction.
America is literally driving itself into debt. US households now carry a stunning $1.34 trillion in automotive debt. What is troubling about this is the amount of driving taking place has plunged courtesy of Covid-19 and much of our economy is built around driving. People take the morning and evening commute, and this was seen […]
Debt Apocalypse: US Student and Auto Loans Hit New Record of $2.6 Trillion.
American consumers are once again spending beyond their means. Just a few months ago there was a startling headline reporting that US consumers now had over $1 trillion in credit card debt outstanding. That seemed astonishing in itself but now looking at debt levels in other sectors we find that auto loans outstanding are also […]
Subprime auto loans face mounting problems: With $1.1 trillion in loans outstanding we all know bad deals are made in good times.
Exuberance breeds bad decisions as inhibitions and due diligence get tossed out the window like dirty water.  This is exactly what is unfolding in the rampaging auto market. The latest data from Fitch Auto ABS Indices shows that 60+ day delinquencies for subprime loans are now at 5 percent of all outstanding balances. This is […]