Submitted by Tyler Durden on 09/05/2012 - 12:09 Asset-Backed Securities
It is remarkable that we greedy ignorant short-term-focused human beings never seem to learn that driving forward and looking in the rear-view mirror can only end in disaster. Forget 'dancing while the music plays' or other such 'defenses' of herd ignorance, the most recent data regarding Auto Loans is simply mind-blowing:
Subprime borrowers received 56.46 percent of loans on used cars in the quarter, up from 52.70 percent a year earlier.
The average loan-to-value on new cars was 109.55%
The average used car loan-to-value ratio rose to 126.62%
77% of Subprime Auto Loans are for a period greater than five years
As Yahoo notes, citing some monkey, "Despite the rise in subprime loans overall, there is still a strong sense of managing risk. Because the overall lending environment has improved, lenders are making loans available to a wider range of customers."
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http://www.zerohedge.com/news/will-we-never-learn-subprime-auto-loans-accelerating-again
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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