What the Fed?: GM Sells U.S. a Lemon

More disturbing is that Experian noted that finance companies specializing in car loans have increased their subprime portfolios from 15% in the second quarter of 2006 to 24.6% in the second quarter of 2008. Below subprime is the fastest-growing car loan segment, jumping to 13.4% from 9.4% over the same period.

Fitch Ratings' Corrigan insists that the collateral is secure and the loans are safe. But at the end of the day, the loan is backed by a used car. So, ultimately, if you connect the dots, that dollar bill in your wallet is a note from the Treasury that could be backed by your neighbor's used Buick.

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