Securitization of sub-prime auto loans in full swing. -- Loans on decade-old clunkers are being bundled into securities, just as subprime mortgages were a few years ago. In the last two years, investors have bought more than $15 billion in subprime auto securities.
Although they're backed mainly by installment contracts signed by people who can't even qualify for a credit card, most of these bonds have been rated investment grade. Many have received the highest rating: AAA.
Expect birthers, baggers and conservatives to blame Frank-Dodd for this eventual free market meltdown!