Why Trump and Sanders are giving the Establishment Fits

This column today by Larry Levin at Trading Advantage says it well:

The housing crisis that started in 2006 and 2007 is certainly fresh in everyone’s mind.  Much of the middle class lost their homes as well as almost everything else.  What was the overall effect?  Private equity firms came in, scooped up the real estate for pennies on the dollar and now not only can people not buy a house but rental rates are at or near all time highs.  Nice end around pulled by the very people who caused the mess in the first place.  So, now that banks have decided that they can no longer fleece the masses on their homes, where do they turn?  Well, what’s typically the second biggest asset that most Americans have?  It’s not their savings!  Per market watch:

“Approximately 62% of Americans have less than $1,000 in their savings accounts and 21% don’t even have a savings account, according to a new survey of more than 5,000 adults conducted this month by Google Consumer Survey for personal finance website GoBankingRates.com.”

No, it’s their car.  What was one of the main catalysts that caused the housing bubble collapse?  Sub-prime home loans.  People were simply given loan that they could not possibly afford.  It then makes you wonder when you see the following chart:

“Rising delinquencies are a warning sign that more loans may end up in default down the road,” Bloomberg reports, citing Wells analyst John McElravey. “What may be most troubling, however, is that the default rate is already climbing, up to 12.3 percent in January from 11.3 the month prior. That is also the highest since 2010, the data show.”

Doesn’t this seem all too familiar?  Loosening underwriting standards to feed Wall Street’s securitization machine so that it can keep up the sales miracle alive?

What could possibly go wrong?