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A rise in risky, subprime auto loans

AP Photo/Alan Diaz

Subprime auto loans are on the rise — with the same easy loans and quick defaults that marked America's mortgage market before the financial crisis, Bloomberg reports.

Why it matters: While no one suggests this will lead to another economic collapse – primarily because auto subprime remains much smaller than mortgage subprime – the financial risks are being spread out in a similar manner. Moreover, it shows consumers and bankers haven't learned from past mistakes.