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...