Twin Trillion-Dollar Bubbles Prompt Dramatic Rise In Non-Mortgage Debt

Jon Alternative Media, Banking, Blogosphere, Economy, Real Estate

Don’t look now, but the US is staring down not one but two trillion-dollar bubbles, both of which have been documented here extensively.
The first is the US auto loan bubble which has ballooned to $900 billion on the back of loose underwriting standards. Don’t believe easy credit is behind the inexorable rise in auto loan debt? Consider the following Q1 statistics from Experian which we never tire of showing:
Average loan term for new cars is now 67 months – a record. Average loan term for used cars is now 62 months – a record. Loans with terms from 74 to 84 months made up 30% of all new vehicle financing – a record. Loans with terms from 74 to 84 months made up 16% of all used vehicle financing – a record. The average amount financed for a new vehicle was $28,711 – a record. The average payment for new vehicles was $488 – a record. The percentage of all new vehicles financed accounted for by leases was 31.46% – a record.

This post was published at Zero Hedge on 08/04/2015.