Lenders are extending longer loan terms that are more prone to default, to consumers who are taking on the most debt since the "recovery" started. Don't worry - it's not "sub-prime", it's "near prime".
The default rate for subprime auto loans reached the highest since 1996, at 5.8%, according to latest Fitch data; this is well above the comparable March default rate in the low 3%'s hit during the peak of the financial crisis.
Why do experts, CEOs, politicians, and other apparently highly capable people make such terrible decisions so often? Is because they’re ill-intentioned? Or because, despite appearances, they’re actually stupid? Nassim Nicholas Taleb says it’s neither.