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Wednesday, June 07, 2017

The Subprime 2.0 Bubble is About to Burst

As we’ve been outlining for weeks now, Subprime 2.0 is the subprime auto-loan industry. And just as the collapse in the subprime mortgage lending was what signaled the beginning of the housing crisis… trouble in the subprime auto-loan industry will be what signals that the next Debt Crisis is here.

On that note… subprime auto-loan defaults are soaring, hitting 11.96%. The last time they were anywhere near these levels was in early 2008 right before the credit crisis hit.

Even worse, the subprime auto-loan industry is just the tip of the iceberg for our current debt bubble.

All told the world has added $57 TRILLION in debt since 2008… bringing the total debt in the world to $217 TRILLION.

That’s means that globally the world is sporting a Debt to GDP of 325%.

And when this Debt Crisis begins, Central Banks will be powerless to stop it as they’ve already used up most of their ammunition during the 2008 Crisis.

A Crash is coming... and it's going to horrific.



Anonymous said...

damn , just call obama , he can get some more money printed , Okee Dookee !

Anonymous said...

Obama left a hell of a mess for Trump to clean up , of course this was a planned thing for anyone who won the election.

Anonymous said...

Come on, t he mess began 9/11/2001 and over 16 long years a huge debt has mounted. Safety has come at a very high cost regardless of political party. Question is when its time to say UNCLE or is it too late?

Anonymous said...

Not a problem. The creditors will just bundle the bad debts into "derivatives" and sell them to FANNIE MAY so the taxpayers will foot the bill for all the bad loans. Just a repeat of the Mortgage fiasco.

Steve said...

It's okay, the sky is falling, the sky is falling! Haven't we heard Winnie the Pooh before? So, oh, gosh, what do we do now?

OMG, we're not doomed! we all made it through 2008 crash, but now we have a Trump a the wheel!
This will be just fine.

Anonymous said...

Don't tell people this!! It means nothing to them. Tell them they are about to lose their credit cards. Only then will you get the panic you are after.