The Subprime 2.0 Bubble is About to Burst

Phoenix Capital Research's picture

As we’ve been outlining for weeks now, Subprime 2.0 is the subprime auto-loan industry. And just as the collapse in the subprime mortgage lending was what signaled the beginning of the housing crisis… trouble in the subprime auto-loan industry will be what signals that the next Debt Crisis is here.

On that note… subprime auto-loan defaults are soaring, hitting 11.96%. The last time they were anywhere near these levels was in early 2008 right before the credit crisis hit.

Even worse, the subprime auto-loan industry is just the tip of the iceberg for our current debt bubble.

All told the world has added $57 TRILLION in debt since 2008… bringing the total debt in the world to $217 TRILLION.

That’s means that globally the world is sporting a Debt to GDP of 325%.

And when this Debt Crisis begins, Central Banks will be powerless to stop it as they’ve already used up most of their ammunition during the 2008 Crisis.

A Crash is coming... and it's going to horrific.

And smart investors will use it to make literal fortunes from it.

To pick up a FREE report outlining how to profit from the coming crash...

CLICK HERE NOW!

Best Regards

Graham Summers
Chief Market Strategist
Phoenix Capital Research

 

 

 

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SybilDefense's picture

No wonder RGR and Smith & Wesson stawks are back to pre Trump levels. 

  Comey will testify that Donald gave the Russians the password to the electrical college and Obama retakes the white house with Hilly C as his new VP/Pres in waiting.  Obama entertains the same terrorist groups Quatar is getting exnayed for.. mussy Bros, Al qeada...(no wait... That part might be true).  A country star and an Ex NBA player are the guests between periods as a southern hockey team lead by an african player win the Stanley cup.

Rumor has it, but you simply can't make this crap up. Did I mention gun sales are skyrocketing.  Hmmmm

 

max_leering's picture

a bit OT, but here it is... currently, from the GCC, 5 members are trying to punish Qatar for their supposed financial assistance to terror (?)... now running a naval blockade of their goods, mainly LNG, certain ports are restricting Qatari goods flowing to/from those same ports... at first we were told the 5 countries opposed the previous payment for hostage release of certain royal family members... now we're told the terrorism support angle is the reason... what if there's a different, but more dubious reason, so here's Johnny- supposedly Sheik al-Thani of Qatar in May, 2017 had offered approx. 150 million USD (paid in BTC) for the assassination of Pres. Trump... al-Thani told supporters that he “would not be in power for long”, meaning Trump, and this conspiracy was being done at the behest of the US 'deep state'... if this is true, and it's all hearsay the same as the first 2 reasons for the GCC ditching Qatar, then I see regime change in Qatars near future

DjangoCat's picture

So hearing this from whom?  Al-Thani quote comes from where? Qatar close to Clinto Foundation and paid them lots of money to get their pipeline through Syria going, so HRC a possible agent provocateur?

Just askin.

CRM114's picture

When.

We know it's coming. We know it's going to be horrific.

When.

That's all we want to know.

If you can't tell us when, shut up until you can.

When.

Endgame Napoleon's picture

Since I have sold insurance to this market, it does not surprise me. The reason their rates are higher is not bad driving, but the inability to pay the premiums consistently. The insureds are allowed to pick the insurance back up by paying fees and/or a higher interest rate. I know from pulling thousands of MVRs. We had to pull one before writing every policy, which is not the norm. Those MVR reports cost a lot of money. In standard insurance, underwriters do not even pull them except when something is awry in a clue report. The same issue applies to the notes. We had to call the dealerships all the time to confirm that the insurance was paid. The poverty industry jobs at least pay a little more, but you work in dangerous situations. It is an interesting juxtaposition with the luxury industry, where the volume of sales is slow, but not as slow as selling to the dwindling middle class. Considering how much economic stress they are under, poverty industry customers can be very nice.

Mustafa Kemal's picture

If that graph of the SPX500 is anywhere near accurate, that put I have is going to pay off nicely, if I can collect

DjangoCat's picture

Big if.  Read The Big Short.  The shorters were blocked from collecting big time.