Wednesday, November 30, 2016

Should we be more concerned?

Business Insider: This research has broader significance beyond the auto-loan market. We've previously reported at length on the worrying state of US consumer finances.
According to UBS research, 65%, 36%, and 22% of lower-, middle-, and higher-income cohorts are "stressed." That means their income falls below or barely covers their expenses. And almost one in five stressed households, or 18%, agreed or strongly agreed with the likelihood of a default over the next year.
When these stressed households were asked what debt they were most likely to default on, auto loans ranked third, behind credit cards and student debt.
Hmm...  OK, we are running a bit red,

Autos, still they are not at threat of a re-quant, the auto used car industry has priced in default rates and should be on the graph ready to move cars.

Credit card rates for weak balance sheets are up, up enough to cover their second place in the default line.

Student loans will kill us, however.  There is an increasing number of kids hiding in college, running up unpayable debt that the Swamp will need to cover. It is a huge number, and there is a conflicting  public sector bailout competing for Texas taxes. We may not be able to make a deal here.


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