US subprime

US auto sales head towards price war as subprime loans rise

The warnings keep coming about the underlying health of the US auto market.  But, as with the subprime housing crisis, nobody wants to listen: Last October, the US Comptroller of the Currency warned that some activity “in auto loans reminds me of what happened in mortgage-backed securities in the run-up to the crisis“ Yet auto […]

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Subprime loans drive US auto sales growth

Major problems are developing in the US auto market.   The critical issue is that companies have been adding capacity since 2009 on the basis that demand would return to SuperCycle levels.  But it hasn’t. The result is that the mass market has become more and more competitive.  Only sales into the high margin luxury/pickup segments are actually […]

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