America’s Fastest-Growing Loan Category Has Eerie Echoes of Subprime Crisis
The title made me think that this was going to be about subprime auto loans, which are definitely in &quot;crisis&quot; territory.<p>This whole mess (subprime auto, renovation, and home loans) comes from the increasingly rent seeking nature of Wall Street. It used to be that fortunes were both made and <i>lost</i> on Wall Street. Now, for large investors (&quot;whales&quot;), it&#x27;s 3.5% or I take my money to another fund. If I don&#x27;t have a consistent positive return, then it&#x27;s something wrong with the fund&#x2F;firm, not the natural order of things. This behavior encourages siphoning from pensions, the retirement funds of average people and &quot;fudging the numbers&quot; on packaged securities in order to keep up with the expected returns of the &quot;whales&quot;.<p>The sad thing is, I don&#x27;t see a change. We&#x27;re going to keep going from crisis to crisis because banks can&#x27;t say no, and the government(s) deems them too big to fail. This shit is fucked.