And now subprime borrowers are defaulting on loans again. Cars, credit cards and personal loans. Companies like Upstart had algorithms that provided instant loans. Problem was when people had free money along with student debts and some rents "paused", they looked like gold on paper. Now they're back to defaulting on loans they never should have had in the first place and we haven't even started up the student loan pause yet.
Cue up the "student loan forgiveness" promises in November 2022 to help get those votes.
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