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Thu Dec 1, 2016, 10:09 AM

Auto Loans Zooming Up Behind Trump

In His Enormous F'king Blind Spot

While Pres.-elect Dump is gearing up to junk Dodd-Frank, the one law most likely to save us from another global economic crash, it turns out risky auto loans are revving up to drive a new financial crisis right onto the driveway at 1600 Pennsylvania Avenue.

http://www.businessinsider.com/auto-loan-delinquency-numbers-from-ny-fed-2016-11?ct=t%28TFN+12_1_16%29&mc_cid=87b421e680&mc_eid=%5BUNIQID%5D

http://www.businessinsider.com/chanos-auto-loan-2016-6?ct=t%28TFN+12_1_16%29&mc_cid=87b421e680&mc_eid=%5BUNIQID%5D

https://www.bloomberg.com/news/articles/2016-03-21/this-is-what-s-going-on-beneath-the-subprime-auto-loan-turmoil?ct=t%28TFN+12_1_16%29&mc_cid=87b421e680&mc_eid=%5BUNIQID%5D

http://www.cnbc.com/2016/12/01/as-auto-lending-rises-so-do-delinquencies.html

According to a blog post by the New York Federal Reserve, the default rate for repayment of subprime auto loans--the pre-owned Dodge Dart that smells like tears and Axe Body Spray of auto loans--is climbing. For background, the global economy crashed in 2008 because Wall Street had figured out how to make money selling investors bundles of shitty mortgages--which made shitty mortgages valuable enough, regardless of whether they'd ever be repaid, for banks to start pushing them on everyone, regardless of whether they could ever repay them..And then selling those bundles of mortgages to idiots. When mortgage defaults began piling up, everyone realized no one had a fucking clue how shitty all those mortgage bundles were. Screech. Crash. Boom. Soft Tinkling of Broken Glass.

But the 2008 crisis could have been set off by default rates for any fucking kind of loans for any kind of purchase. Auto. College. iPhone. Weed.

Since it happened to be mortgages, all the mortgage assholes started looking for other shit to fuck. And they found the auto-loan industry parked on an isolated street, far from the street lights, with the keys still inside, and a six-pack on the passenger seat.

In some ways, car loans are considered even safer than home loans. You don't have to own your home. But you need a fucking car to get to the fucking job you need to pay off your fucking car loan.

Not to worry, however, because who better to slam the brakes on this shit than Trump Treasury Secretary Steve Mnuchin, a predatory banker who produced Avatar.

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Reply Auto Loans Zooming Up Behind Trump (Original post)
HAB911 Dec 2016 OP
exboyfil Dec 2016 #1
dixiegrrrrl Dec 2016 #2
neeksgeek Dec 2016 #3

Response to HAB911 (Original post)

Thu Dec 1, 2016, 10:29 AM

1. Are the unaccountable rating agencies at it again?

They skated through this crap last time, and some of them should have been put up against the wall (along with the bankers).

Here is an article I found with a chilling quote:

http://pomerantzlawfirm.com/publications/2015/6/25/subprime-redux-will-securitized-subprime-auto-loans-cause-the-next-financial-crisis

G.M. Financial, has been one of the largest sellers of auto loan backed bonds, selling a total of $65 billion in securities. This year, G.M. Financial sold investors roughly $730 million in bonds made up of auto loans that carried an average annual interest rate of about 13 percent. Standard & Poor’s gave most of the bonds an AAA rating, but given what we know now about the ratings agencies, that rating is highly suspect.

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Response to HAB911 (Original post)

Thu Dec 1, 2016, 10:43 AM

2. Ditto student loans........ n/t

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Response to HAB911 (Original post)

Thu Dec 1, 2016, 11:24 AM

3. I own my car outright. Simplify. Don't buy expensive things!

Bought it for $500 from a colleague in January of 2014, after three years without a car. (I sold the much nicer one I had before in order to pay off the loan, instead of getting it repossessed, when I wasn't making much money and couldn't afford the payments and insurance.)

It's a beat-up 2000 chevy tracker, with nearly 200,000 miles on it. I've put about $1500 into it to keep it running. So $2000 over three years, plus $30 a month in liability insurance, plus oil changes and gas, works out to about $100 a month.

Had it appraised. It's worth $200 for trade in! Well below any exemption limits in bankruptcy, if that ever becomes an issue.

My wife wants me to get a "nicer" car. Admittedly, I don't like it when someone gives me a sideways glance because I'm driving a jalopy! But I always win that debate when I point out that I own this one. Nobody can take it from me.

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