WSJ is reporting that there is a surge in Auto-Loan delinquencies. 4.5% of auto loans made in 2006 to top-rated borrowers were at least 30 days delinquent. And 12% of subprime borrowers were dlinquent on their 2006 auto loans.
If nothing else, more delinquencies means more problems for US Car makers as they rely more on cheap financing. Although, according to the article, Ford and GM problems were less severe because they do not lend to sub-prime borrowers.
I wonder if this will lead to a new bail out from Washington. How about lowering the rate of all people who bought a gas-guzzeling SUV in last two years?
In another article, Student-loans are hit by higher default rates.
How about another bailout there? Anyone with an average below C will not have to pay anything for next five years?
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