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What’s Behind the Subprime Consumer Loan Implosion?
What’s Behind the Subprime Consumer Loan Implosion? These are the good times, but why are subprime credit cards, auto loans, and short-term installment loans blowing out? This is the transcript from my podcast last Sunday, THE WOLF STREET REPORT: OK, we’ve got a situation in subprime consumer loans. The delinquency rate on credit-card loan balances at […]
Debt is back but this time its corporate
Debt is back but this time its corporate On Wednesday Feb 7th 2007 HSBC issued a profit warning. It was the first in its 142 year history. The bank told its share holders it would have to take an unprecedented charge of $10.5 billion because one of its units, its sub prime lender, was in […]
Canada Has A Subprime Real Estate Problem, You Just Don’t Know It
Canada Has A Subprime Real Estate Problem, You Just Don’t Know It A few weeks ago, a real estate agent told me about his client. Relatively wealthy older dude, closed on not one but two townhouses he plans on flipping. After some questions regarding who financed such a deal, he explains it was a private […]
Wave of Corporate Bankruptcies Coming: GE Warns About its Subprime Mortgage Unit
Wave of Corporate Bankruptcies Coming: GE Warns About its Subprime Mortgage Unit Earlier today I commented to a friend about corporate bankruptcies. A few hours later, another friend Emailed about GE. Earlier today a friend pinged me with this story: U.S.Personal Spending Outpaces Income Growth For 26th Straight Month. He commented: “Hey, a lot of […]
How Much Are Banks Exposed to Subprime? More than we Think
How Much Are Banks Exposed to Subprime? More than we Think Wells Fargo has $81 billion in exposure to loans that, on paper, it isn’t exposed to. A couple of days ago, when I wrote about the soaring delinquency rates in subprime auto loans – the worst since 1996 – and the collapse of three […]
Are Subprime Debt Slaves, a Leading Indicator, Worrying the Fed?
Are Subprime Debt Slaves, a Leading Indicator, Worrying the Fed? Credit problems always appear first at the margins. The new Fed remains a somewhat unknown quantity: There are still four vacancies on the Fed’s seven-member Board of Governors that forms the core of the policy-making FOMC. The new Chairman, Jerome Powell, has already shown in […]
Auto-Loan Subprime Blows Up Lehman-Moment-Like
Auto-Loan Subprime Blows Up Lehman-Moment-Like But there is no Financial Crisis. These are the boom times. Given Americans’ ceaseless urge to borrow and spend, household debt in the third quarter surged by $610 billion, or 5%, from the third quarter last year, to a new record of $13 trillion, according to the New York Fed. […]
Household Debt Hits $12.4 Trillion As Subprime Loan Delinquencies Hit Highest In 6 Years: NY Fed
Household Debt Hits $12.4 Trillion As Subprime Loan Delinquencies Hit Highest In 6 Years: NY Fed The latest just released Quarterly Report on Household Debt and Credit from the New York Fed showed a small increase in overall debt in the third quarter of 2016, prompted by gains in non-housing debt, and new all time highs in […]
It Starts: Subprime Auto Loans Implode (in Your Bond Fund)
It Starts: Subprime Auto Loans Implode (in Your Bond Fund) “Fears of an impending liquidity crunch in that asset class.” “What is happening in this space today reminds me of what happened in mortgage-backed securities in the run-up to the crisis,” U.S. Comptroller of the Currency Thomas Curry warned in October about the auto loan bubble. And […]
“Bank Failures and Systemic Breakdowns”: Regulator Warns on Autos, Subprime, Commercial Real-Estate…
“Bank Failures and Systemic Breakdowns”: Regulator Warns on Autos, Subprime, Commercial Real-Estate… If you look at auto sales, which are flirting with all-time highs, and at commercial real-estate prices, which are way beyond all-time highs, and if you look at the loans, including subprime, that make it all happen, you’d think the US economy is […]
This Is Another “Subprime” Waiting to Blow
This Is Another “Subprime” Waiting to Blow Dow down 239 points yesterday – or 1.5% – after Japan posted its biggest one-day gain in seven years. This is getting interesting again. If it is just “volatility,” as Wall Street’s shills in the press maintain, it will probably pass soon. Everything will be okay. Back to […]
New Vehicle Sales Collapse in Canada’s Oil Patch
New Vehicle Sales Collapse in Canada’s Oil Patch Oil spills into the broader economy. Canada’s economy has split in two. The resource producing economy is deteriorating at a breath-taking pace, broadsided by collapsing commodity prices. For Canada, the most important commodity is crude oil. West Texas Intermediate has plunged below $39 a barrel, not seen […]
The Unnerving Thing Wells Fargo Just Said About the Auto Boom
The Unnerving Thing Wells Fargo Just Said About the Auto Boom American consumers are borrowing like never before to buy cars. It has been the reason why the US auto industry is intoxicated with its own exuberance. Last year, 16.5 million new vehicles were sold. This year, the industry hopes to breach the sound barrier […]
Subprime Spikes Auto Sales, Delinquencies Soar, Industry in Total Denial, Fallout to Hit Main Street
Subprime Spikes Auto Sales, Delinquencies Soar, Industry in Total Denial, Fallout to Hit Main Street New vehicle sales in the US have been on a tear in 2014, rising 5.6% to 16.5 million units, the highest since banner year 2006. Light-truck sales jumped 10%, cars edged up 1.8%. The industry is drunk with its own […]
