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U.S. Banks Missed Warning Signs on Tricolor. Now, Their Losses Are Adding Up

• WarOnPrivacy 1y ago
  The timing couldn't be worse for American families. Total household debt has hit a record $18.39 trillion, and Americans now spend about 11% of their income just on debt payments In 2018 our household started to exit a decade of hard poverty. FF to now and we have some savings and no debt. The other natural outcome of saving-to-buy (now that we can afford to do that) was zero credit ratings for the 6 of us.
  • bdangubic 1y ago
    0 debt and 10k now with my upvote :)
    • WarOnPrivacy 1y ago
      Sweet. Thanks.
• more_corn 1y ago
  Archive link doesn’t work for Barron’s. For anyone not yet in the know apparently a subprime auto loan company suddenly went bankrupt early last month amid accusations of fraud Alt link with related news: https://moneywise.com/loans/auto-loans/tricolor-subprime-auto-lender-bankruptcy-industry https://moneywise.com/loans/auto-loans/tricolor-subprime-aut...
  • fred_is_fred 1y ago
    And beyond that they made many loans to undocumented immigrants (as per article). Deported people tend to not pay their car note.
• kristianp 1y ago
  > Bloomberg estimates the subprime auto market to be worth $80 billion to investors. (2) It's not going to put the big banks out of business. Maybe it will hurt their profits somewhat.
• nerdsniper 1y ago
  There's no way around this paywall, so posting TFA is against HN rules and should be flagged. Otherwise ~99% of comments will be discussing the title, not the article. https://news.ycombinator.com/newsfaq.html https://news.ycombinator.com/newsfaq.html