news.goldseek.com / By Graham Summers / 4 May 2017
The Subprime 2.0 story is now gaining traction in the financial media.
By way of brief review, here is the template for Subprime 1.0 (the mortgage meltdown).
1) Banks, hungry for profits, began issuing mortgages to sub-prime borrowers (people who couldn’t possibly pay the loans back).
2) Housing prices and sales began to fall.
3) Subprime borrowers began defaulting on their mortgage.
4) Subprime mortgage lenders began to collapse.
5) A crisis unfolds as the issue spreads throughout the banks.
Subprime 2.0 is following the exact same pattern, just replace the words “housing” with “automobiles” and “mortgages” with “auto-loans.” As the Wall Street Journal notes…
Read more ... source: The Bitcoin Channel
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