As Oaktree Capital Management’s co-chair and credit specialist, Howard Marks, has noted: “The worst loans are made at the best of times,” when credit and optimism are plentiful. Consumers tend to pay auto loans first over mortgages since vehicles are often essential for work. See, Auto industry is Flashing a Warning Sign on the U.S. economy:The auto industry is flashing warning lights on the state of the U.S. economy. A subprime auto lender recently collapsed, and some car retailers are warning that consumers are pulling back. In epic complacency, lenders and credit investors have been accepting record-low compensation for escalating capital risk.