“More than 19% of today’s loans are going to subprime or ‘deep subprime’ borrowers — and total volume for lower credit score borrowers is just shy of its 2005 record.  Indeed, lenders are basically giving loans to anyone with a pulse. The New York Fed recently found that application rejection rates have dropped to 3.3% from more than 10% a few years ago. The average loan now stretches out to a record 67 months, while 27% of U.S. loans sport terms of six to seven years. That’s because buyers can’t afford their monthly payments any other way. Bottom line: If you own auto stocks or stocks leveraged to the auto industry, sell them.”

http://www.moneyandmarkets.com/peak-auto-latest-threat-markets-75131

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