FYI: The latest macro worry from the past week deals with auto loans.
According to the Federal Reserve Bank of New York there are more than 7 million Americans who are 90 or more behind on their car loan payments. That’s a million more people than at the end of 2010.
This has led a number of prognosticators to wonder aloud whether this means the expansion is on the edge of rolling over. Others are worried this is a prelude to a crash similar to the subprime mortgage mess.
After all, subprime was just a small piece of the market and it was “contained” and we all know how that worked out.
I don’t pretend to be an expert on auto loans nor do I play one on TV. But conflating auto loans with housing loans seems like a bit of a stretch to me.
Let’s take a look at some graphs to see why.
Regards,
Ted
https://awealthofcommonsense.com/2019/02/auto-loans-are-not-the-next-subprime/
