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The US Auto Industry is about to Implode - Michael Alkin - YouTube needsEditing video EV BEV ICE
01:05; USA auto industry
02:30; incentives per unit
02:38; auto units sold sales / month including Tesla
The  US  Auto  Industry  is  about  to  Implode  -  Michael  Alkin  YouTube  needsEditing  video  EV  BEV  ICE  usa  subPrime  loan  delinquent  delinquencies 
5 weeks ago by neerajsinghvns
Opinion | The American Dream Isn’t for Black Millennials
Jan. 5, 2019 | The New York Times | By Reniqua Allen. Ms. Allen is the author of “It Was All a Dream.”

....I marched up to my new, small, one-bedroom apartment on the Hill, satisfied. It felt as if I’d broken barriers.

But when I got a notice in the mail about five years after I closed, I felt dizzy. It was not long after the financial crisis. The letter said that my mortgage company had been charged with giving subprime loans to black and Hispanic people around the country and asked if I wanted to join a class-action suit. I had most likely been the target of predatory lending. I had known from the start that my income could make me a target. I’d heard the words of the broker. But because of my race? It hadn’t crossed my mind. I was devastated......How much room is there in anyone’s life for a mistake or the perception of a mistake if you’re young and black in America? How much of the American dream hangs in the balance? For the dozens of people I talked to, the reality is that if we want our dreams to come true, all too often we have to be almost perfect, making the right decisions all the time. Not getting that ticket. Not listening to that mortgage broker. Not speaking up.....I know the history of this country, know the history of redlining, know how my grandparents were locked out of neighborhoods because of their skin color. But for some reason I was still surprised. I would say I was mad, but more than that, I was hurt that I had been lulled into some kind of false bourgeois comfort that had made me think that my life was different from my predecessors’ lives. Sure, I had made it up that Hill, but at what cost?
African-Americans  downward_mobility  economic_downturn  millennials  the_American_dream  subprime  predatory_practices  racial_disparities  redlining  home_ownership 
january 2019 by jerryking
Subprime carmageddon: specialized lenders begin to collapse • Wolf Street
Wolf Richter:
<p>The subprime auto lending business is highly cyclical. For example, according to Bloomberg, citing Moody’s data, 41 subprime lenders filed for bankruptcy during the subprime auto loan bust between 1997 and 1999.

But unlike subprime home mortgages, subprime auto loans won’t take down the financial system. About 25% of the auto loans written are subprime. For new cars, it’s about 20%. Of the $1.11trn in total auto loans outstanding at the end of 2017, about $280bn were subprime – less than a quarter of the $1.3trn subprime mortgages before the financial crisis. Even if the total subprime portfolio produced a net loss of 50%, the losses would amount to only about $140bn.

And there are other differences: Vehicles are quickly repossessed, usually after three months of missed payments. Even in bad times, there is a liquid market for the collateral at auctions around the country, and vehicles can be shipped to auctions with the greatest demand. The results are that lenders don’t end up holding these vehicles and loans on their balance sheet for years, as mortgage lenders did with defaulted home mortgages and homes.

But subprime will take down many more of the specialized lenders. And the survivors will tighten lending standards. This will prevent more car buyers from buying a new vehicles.</p>

Been coming for some time; it's the effect on new vehicle sales that could have broader knock-on effects.
cars  loans  subprime  credit 
april 2018 by charlesarthur
Credit growth and the Global Crisis: A new narrative | VOX, CEPR’s Policy Portal
the fraction of foreclosures accounted for by the highest three quartiles of the credit score distribution rose from 35% to 70%. Our analysis points to a large role of real estate investors – mortgagors who held multiple first liens – in both the boom and bust of the housing market. We find that investors were responsible for most of the growth in balances and virtually all of the rise in defaults for prime borrowers.
subprime  economics 
october 2017 by libbymiller
Will the death of US retail be the next big short?
The concern is that this could cause collateral damage to the broader commercial and even residential real estate market, as shuttered shops, malls and stores are redeveloped for other uses. Jay Sellick, senior managing director of 13D, predicts this will be the “next stage of this crisis”, weighing on the $4tn worth of mortgages in the commercial real estate market, which already “appears overbuilt and over-indebted”.
retail  usa  subprime 
july 2017 by libbymiller

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