Sell This Subprime Death Stock Now
The next subprime debacle...
Any one remember Fannie Mae (OTC: FNMA)? They lent money to anyone who could fog a mirror? Their stock dropped from $70 to $0.70 in a year.
In the aftermath of the 2008 debt crisis the government took over General Motors (NYSE: GM). As a result the harder lending rules that were put in place for mortgages weren’t put in place for cars.
This means that many people who couldn’t get a loan for a house could buy a sweet car on an 84 month loan which now equals 27.5 percent of all car loans. Forty-two percent of used car buyers have loans longer than seven years.
According to the Federal Reserve Bank of New York, vehicle loans are now at an all time record of $1.16 trillion. When the defaults come, the car companies who finance these loans will feel it first.
The leader in subprime autoloans is Santander Consumer USA Holdings Inc. (NYSE: SC). You should sell it now.
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