Why some experts think auto loans are the next ‘red flag’ for the economy
Here is a spooky financial scenario: over seven million Americans are more than three months behind on their loan payments. Some owe much more than the asset is actually worth. And many of those loans are “subprime,” taken out by borrowers with poor credit.
Sound familiar? No, it’s not the housing crisis of more than a decade ago—it’s auto loans, circa 2020. And it’s making some economists very nervous indeed.
“There are a few things that are worrying: The amount being...