Subprime borrowers are struggling harder than they have in three decades. The 60-day delinquency rate on US car loans just hit 6.65%—a level not seen since 1994. That's a red flag for consumer health and broader credit stress building beneath the surface.

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RamenStacker

· 11-27 03:59

Here it comes again, the drama of car loans in the US blowing up. Haven't seen it since the 1960s? I'm thinking, isn't the economy just like this now?

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ProposalManiac

· 11-27 03:58

Look at this data, it has directly touched the ceiling since 1994, indeed quite ruthless. The mechanism design of the subprime mortgage market should have been reflected upon long ago. --- Subprime crisis 2.0? The 60-day delinquency rate has broken historical highs, why is this lesson about to repeat itself? --- 6.65% is an interesting threshold, systemic risks are starting to surface, and regulators really need to address governance loopholes. --- Americans are playing the leverage of this credit system a bit too much, have they forgotten history or are they pretending to forget? --- The most severe in thirty years... To put it bluntly, the initial incentive mechanism has never truly aligned with the interests of risk bearers. --- Car loan delinquencies hit a new high, is the next step to package it and pass it on to investors as bonds? The trap has never changed.

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BoredStaker