Apr 3, 2017

America's subprime auto problem

Wall Street analysts have worriedly watched rising subprime auto delinquencies—with some even suggesting similarities to the subprime real estate market of 2006.

Such interpretations are very likely overblown, as the subprime auto market is far smaller than subprime real estate was in 2006. Meanwhile, that cars are so easily recoverable and resold makes these loans less of a threat to the solvency of lenders.

A massive burden: Nonetheless, these loans illustrate the burden working class Americans must bear just so that they can continue to be productive members of society. These loans typically bear an interest rate of 14% over 67 months. Given the median used car costs roughly $19,000, assuming a 10% down payment, that means $369 monthly payment—$112 of which is interest—a huge burden for a minimum wage laborer.

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America's future looks a lot like Nevada

Illustration: Sarah Grillo/Axios

Today's Nevada caucus will foreshadow the future of American politics well beyond 2020.

Why it matters: The U.S. is in the midst of a demographic transformation, and the country's future looks a lot like Nevada's present. Today's results, in addition to shaping the 2020 race, will help tell us where politics is headed in a rapidly changing country.

Coronavirus spreads to more countries, and U.S. ups its case count

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens.

The novel coronavirus continues to spread to more nations, and the U.S. reports a doubling of its confirmed cases to 34 — while noting those are mostly due to repatriated citizens, emphasizing there's no "community spread" yet in the U.S. Meanwhile, Italy reported its first virus-related death on Friday.

The big picture: COVID-19 has now killed at least 2,359 people and infected more than 77,000 others, mostly in mainland China. New countries to announce infections recently include Israel, Lebanon and Iran.

Go deeperArrowUpdated 13 hours ago - Health