Why the US has a subprime car loan problem | Charts that Count

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[ggasdfdf]

Dear ft, would you do further research on that because this sounds like a major crisis. For me it sounds like people with low income take loans to afford work...
It would be interesting to see where those people are based? Country, area, coast etc...
Which typ of cars they bought, like price and kind (family car/van, or sth else)

To take credit for consumption is so stupid (sry for offending) but you get used to a live which you can not afford. This circle is really hard to break and the one day or the other the card house will collabse.

Unless those people have to borrow money to get to work, which is still awful. However, more information would be necessary to investage the hypothese...

[stephen]

It would be interesting for this to be revisited? Given that more people are working from home, not needing a car for travel, will the mortgage repayment be prioritized over car repayment?

[jeebus]

I like how the conclusion contradicts the title...

[donaldtrumpuncensored]

Please feel free to fix my ignorance... I just wonder if people are being reductionistic in their analysis of the current situation; they seem to be judging the present time with 2008. Wouldn't I be correct in saying that the current problem is "debt" and that really it doesn't matter it's source because it is still going to bring the system down?

I say this because it seems to me that the repo situation in the US indicates a lack of liquidity which I assume exists because of debt (from whatever source). Then there is the graph of how interest rates in the US have declined since like 1980. they decline because of rising debt meaning that people can't afford to pay interest at a higher rate. Interest rates approaching zero/going negative suggests that we are coming to a crisis point.

[raybod]

The only chart that counts is how much money the Federal Reserve creates

[JunSian]

Green line is not mentioned in the video. it is overall US consumers' debt.
Quoting a respond from FT in the comments,
" The green line represents overall US consumers' debt.
The blue line represents US car loans that are more than 90 days late (as a percentage of total US consumer debt).
The red line represents US mortgage loans which are over 90 days late. "