by John Rubino, Dollar Collapse:
Record student loan balances? Check. Trillion dollar credit card debt? Check. Six tech stocks dominating the Nasdaq? Check. Subprime auto loans at record levels? Check.
All that’s missing is subprime mortgages and we’d have every bubble base covered. Oh wait, those are back too, just under a different name:
Subprime mortgages make a comeback—with a new name and soaring demand
They were blamed for the biggest financial disaster in a century. Subprime mortgages – home loans to borrowers with sketchy credit who put little to no skin in the game. Following the epic housing crash, they disappeared, due to strong, new regulation, and zero demand from investors who were badly burned. Barely a decade later, they’re coming back with a new name — nonprime — and, so far, some new standards.