High-Profile Sectors Start To Roll Over

Long credit cycles like the current one always end with a crash. But first they deteriorate. The headline numbers remain positive while under the surface a growing list of sectors start to falter. It’s only when the latter reach a critical mass that market psychology turns dark.
How far along is this process today? Pretty far, it seems, as some high-profile industries roll over:
‘Deep’ Subprime Car Loans Hit Crisis-Era Milestone (Bloomberg) – Amid all the reflection on the 10-year anniversary of the start of the subprime loan crisis, here’s a throwback that investors could probably do without.
There’s a section of the auto-loan market – known in industry parlance as deep subprime – where delinquency rates have ticked up to levels last seen in 2007, according to data compiled by credit reporting bureau Equifax.
‘Performance of recent deep subprime vintages is awful,’ Equifax said in a slide show on second-quarter credit trends.

This post was published at DollarCollapse on AUGUST 16, 2017.