Maggie's Farm

re Trucks Are Saving the American Economy

Just like the housing bubble. Loaning money to people with poor credit to jack sales.

From the article, "As the fifth anniversary of the Federal Reserve’s policy of keeping interest rates near zero approaches, the market for subprime borrowing is again becoming frothy, this time in the car business instead of housing. U.S. auto sales, on pace for the best year since 2007, are increasingly being fueled by borrowers with spotty credit. They accounted for more than 27 percent of loans for new vehicles in the first half of the year, the highest proportion since Experian Automotive (EXPN:LN) began tracking the data in 2007. That compares with 25 percent last year and 18 percent in 2009, as lenders pulled back during the recession. “Perhaps more than any other factor, easing credit has been the key to the U.S. auto recovery,” Adam Jonas, an analyst with Morgan Stanley (MS), wrote in an October note to investors."

http://www.businessweek.com/articles/2013-11-27/subprime-loans-are-boosting-car-sales

100 years ago today the Empress of Ireland collided with another ship in the St. Lawrence River in a heavy fog in the wee hours. The ship sank in about 14 minutes. Over 1000 people died.

http://lostliners.com/content/?p=936