The best bad credit loans, aka subprime auto loans, could take down the entire US economy.
Institutional investors bought up subprime auto-loan backed securities because of their higher yields. These bonds are backed by suprime auto loans that have been repackaged and stamped with high credit ratings. Fitch warned that those issued in 2015 may end up the worst performing ever in the history of auto-loan securitizations. Many are calling this carmageddon.
Below is the Keiser Report where Max and Stacy discuss carmageddon and the toxic debts that have brought the credit markets to such a scary place.