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.

Timeline:

  • 2009: $2.5 billion new subprime auto bonds were sold.
  • 2013: U.S. car sales began to soar.
  • 2016, $26 billion new subprime auto bonds were sold — more than the pre-crisis average.

How it happened: The partnership between Fiat Chrysler and Santander Bank has made them kings of the subprime auto market and has gotten Santander into some legal trouble. Bloomberg went through court documents and filings to find that Santander vetted incomes of borrowers fewer than once for every 10 loans, which were then packaged into $1 billion bonds. It's also easy for dealers to find ways to approve low-income borrowers for auto loans that are too much for them. On top of that, Wall Street rewards these risky activities.

Go deeper

9 hours ago - Health

Fauci says if people won't wear masks, maybe it should be mandated

Anthony Fauci. Photo: Graeme Jennings- Pool/Getty Images

NIAID director Anthony Fauci told CNN on Friday evening that if "people are not wearing masks, then maybe we should be mandating it."

Why it matters: Fauci made the comments the same day the U.S. hit its highest daily COVID-19 case count since the pandemic began.

Harris to Black voters: Casting a ballot is about honoring your ancestors

Democratic vice presidential nominee Kamala Harris speaks at a "Get Out The Vote" rally at Morehouse College. Photo: Elijah Nouvelage/AFP via Getty Images

Sen. Kamala Harris appealed to Black voters in Georgia on Friday, urging them to "honor the ancestors" by casting ballots, and again calling President Trump a "racist."

Why it matters: The U.S. saw a significant decline in African-American voter turnout between 2012 and 2016, reaching its lowest point since 2000. Higher turnout among Black Americans this year could tip the balance in favor of Democrats in key battleground states, including Georgia.

Updated 9 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Politics: Fauci: Trump hasn't been to a COVID task force meeting in months.
  2. Sports: The youth sports exodus continues — Big Ten football is back.
  3. Health: U.S. hits highest daily COVID-19 case count since pandemic began —AstraZeneca to resume vaccine trial in U.S.How to help save 130,000 lives.
  4. Retail: Santa won't greet kids at Macy's this year.
  5. World: Spain and France exceed 1 million cases.