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Here Comes A Car Crash Of A Different Sort
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Remember how people who shouldn't have gotten loans got them to buy houses back in the bubble days? And what that led to? Here's a mini-version happening right now: subprime car loans. You need a car and you can't afford one? You CAN get a loan, from a used car dealer, even if you have a low credit score. The interest rate will be sky-high, and you might end up with a lemon that will be repossessed in short order, but you can get that financing. And the lenders are bundling the loans and selling them off in complicated securities. It's like they learned nothing. (New York Times)
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