Wall Street Bet Big on Used-Car Loans for Years. Now a Crisis May Be Looming.

tintory@lemm.ee to politics @lemmy.world – 93 points –
Wall Street Bet Big on Used-Car Loans for Years. Now a Crisis May Be Looming.
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Auto bonds increased in kind, as lenders packaged those loans together and sold them as securities on Wall Street, where ratings agencies labeled them as largely safe investments.

Even the economy nowadays is nostalgic about the 2000s.

Auto bonds increased in kind, as lenders packaged those loans together and sold them as securities on Wall Street, where ratings agencies labeled them as largely safe investments.

can you explain this in layman's terms? this means the loans that people take to buy cars, they got packaged together and sold as an investment for other people?

You've pretty much explained it in your second question. Yes.