USA - We are in the midst of watching the subprime auto lending bubble burst in its entirety. Smaller subprime auto lenders are starting to implode, and we all know what comes next: the larger companies go bust, inciting real capitulation ...smaller subprime lenders are starting to simply implode after being faced with losses and defaults. In addition to losses and defaults, Bloomberg reported this morning that there have been allegations of fraud and under reporting losses… The continued focus on borrowing and spending, instead of saving and underconsumption, will ensure not only that these bubbles continue to happen going forward, but they will get larger in size as time progresses.