Rising first-payment defaults and 60-day delinquencies, which are “leading indicators,” caused the retailer to become “prudent.” Shares plunged 33%.
But it’s Even Worse Than it Looks. And this time, there is no jobs crisis. This time, it’s the result of greed by subprime lenders.
Santander Consumer USA is on the forefront of souring subprime-auto-loan backed securities.
But these are the good times. Automakers are not amused.
But what will happen to banks and automakers when the cycle turns?
“A development that is surprising during a strong economy and labor market”: New York Fed
Subprime goes to the Toronto condo market.
Layoffs and massive losses loom.
“I don’t believe we are going to have a major, major collapse in housing.”
What will sink the US auto boom?