THE SUBPRIME U.S. ECONOMY: Disintegrating Due To Subprime Auto, Housing, Bond And Energy Debt
The U.S. financial system continues to disintegrate even though most Americans hardly notice. The system is being gutted from the inside out… much the same way a chronic disease weakens a patience even before any symptoms are felt. However, we are already experiencing painful symptoms as U.S. economic indicators continue to weaken.
Here are just a few of the recent headlines:
These are just some of the recent headlines pointing to BIG TROUBLE AHEAD. However, the U.S. financial system is in dire shape due to the SUBPRIMING of the entire economy. Today, anyone can purchase a car for little or nothing down and finance it for 84 months. The U.S. housing market is also in the same predicament.
According to the article, Are We Heading for Another Housing Crisis?, published on May 12th this year:
While the economy and home prices have both rebounded, some people have expressed concern we are headed for a repeat housing bubble. As of January 2016, home prices were rising at a rate twice that of inflation, according to the S&P/Case-Shiller U.S. National Home Price Index.
What’s more, Fannie Mae and Freddie Mac have unveiled programs to allow first-time homebuyers to make a purchase with only 3 percent down. Plus, some lenders are using alternate credit scores, which may make loans available to those who can’t get one under conventional credit scoring methods.
So, here we are heading down the same path as we did prior to the 2008 U.S. Investment Banking and Housing collapse. However, this time around its both a Subprime Auto & Housing problem. But, that is just part of the Subprime mess.