“Subprime lending is surging.  Subprime loans are made to people with bad credit. They’re riskier than traditional loans. Lenders charge higher interest rates on subprime loans to compensate for the higher risk.  Subprime lending exploded in the early-to-mid-2000s and fueled the housing bubble. When people couldn’t pay back these expensive loans, the housing market crashed.  It sparked the biggest financial crisis since the Great Depression…and almost took down the whole US financial system. Lenders aren’t giving people subprime loans to buy houses much anymore. Instead, they’re giving subprime loans to people to buy cars… and to buy stuff on their credit cards.”

http://www.caseyresearch.com/articles/a-major-cause-of-the-financial-crisis-is-making-a-comeback

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