Are we heading for another sub-prime bust?

[windcatcher]

Though there are soft spots in the subprime market, overall, business is good. The percentage of auto loans going to people with poor credit, for example, has been increasing. And while a number of banks have stopped offering credit cards to the debt-challenged, there are still companies handing out subprime plastic. First Premier Bank, for one, just tweaked the fees on its credit cards aimed at individuals with low credit scores to comply with recent legislation, and its business proceeds apace.

A careful read of the article also reveals those who are the most likely to need credit, and have trouble paying are the most likely to have to advance special fees to obtain credit

 

[billwald]

Next balloon pop should be commercial real estate.