Subprime Auto Loans Blow Up, Delinquencies at 2009 Level, Biggest 12-Month Surge Since 2010

WOLF STREET REPORTWOLF STREET STOREBeer, Wine, & FoodBrick and MortarCalifornia Daydreamin’CanadaCars, Trucks & CrashesCentral BanksChinaCommercial PropertyCompanies & MarketsConsumersCredit BubbleCryptosDebtor NationEnergyEurope’s DilemmasGold & SilverFederal ReserveHousing Bubble 2Inflation & DevaluationInformation AgeJobsTradeTransportationWall St. Shenanigans The auto industry depends on subprime-rated customers that make up over 21% of total auto-loan originations. Without these customers, the wheels would come off the industry. And tightening up lending standards to reduce risks would cause serious damage to the undercarriage. Subprime lending is very profitable – until the loans blow up – because interest rates can be high. But those subprime auto loans are blowing up at rates not seen since the worst days of the Financial Crisis – and these are the good times! Serious auto-loan delinquencies – 90 days or more past due – in the second quarter, 2019, jumped 47 basis points year-over-year to 4.64% of all outstanding auto loans and leases, according to New York Fed data released today. This is about the same delinquency rate as in Q3 2009, just months aft...

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Insider Picks writes about products and services to help you navigate when shopping online. Insider Inc. receives a commission from our affiliate partners when you buy through our links, but our reporting and recommendations are always independent and objective. I love almost everything about traveling — that includes hanging out in the airport. Yep, you read that correctly. Long lines, hectic check-ins, overstuffed airplanes — they don’t really bother me because I’m usually giddy about getting away. But I do dislike packing. Mostly that’s because I can’t decide what to bring. But sometimes it’s because of my suitcase. I admit that I’ve been embarrassed once or twice at the baggage carousel by stepping up and pulling off that suitcase. I’ve also cursed out a suitcase several times — once when I was zig-zagging through crowds at Heathrow desperately trying to catch my flight home and one wheel snapped right off. There are, of course, many other things that can go awry with your luggage. Sometimes the airline misplaces it, or the zipper breaks as you are headed out the door, or you arrive home to find that your carefully-wrapped souvenirs...