Wednesday, June 1, 2016

And Another Bubble Bursts

June 1, 2016
U.S. Auto Sales Slumped In May

General Motors Co. said sales skidded 18% in the month

Meanwhile, the biggest recipient of 0% retail loans was...

The rate of seriously delinquent subprime car loans soared above 5% in February, according to Fitch Ratings. That's worse than during the Great Recession and the highest level since 1996.

Fitch blames it on a dramatic rise in loans with lax borrowing standards that have helped fuel the recent boom in auto sales. More Americans bought new cars last year than ever before and the amount of auto loans soared beyond $1 trillion.

Car Max (National used car dealership)

Auto Nation (National new and used dealership)

Global Automakers index