Financial analysts say about a quarter of all automotive loans are subprime, and expect that number to climb as consumer debt continues to rise. These loans can be highly lucrative for lenders, with interest rates that can be well over 20%. Many of these subprime auto payments often come in late, bringing in late fees as well. Nearly 4% of all subprime auto loans are more than 60 days late, up by 3% from 2013.In case you missed the latest capitalist scam, our masters in the One Percent are now making big profits by investing in packaged auto loans. Surely you remember how the packaged house mortgages (capitalists call them "securities") ended. Well, capitalists made big bucks while this latter scam lasted, and they are still benefiting by buying back the foreclosed homes at bargain-basement prices and renting them out to people who lost their homes. Read this article to find out how the "investors" are making sure their bets on these new packaged auto loan securities are safe. And, they think that this new techno-fix should work with house sales.
Bloomberg BusinessWeek reports that investment rating companies are bestowing top grades for bonds based on subprime auto loans...
in the time remaining, to help us understand how the man-made system of capitalism will lead to the extinction of our human species, and so many others.
Tuesday, November 11, 2014
Lenders Can Now Disable Your Car When You're Driving on the Freeway
Click here to access article by Cliff Weathers from AlterNet.