Wall Street Learned NOTHING! We're Headed for Another Meltdown

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History is repeating itself—welcome back to 2008. A major subprime auto lender just went bankrupt, and here’s the kicker: they were handing out car loans to illegal immigrants and still managed to get a AAA rating from the agencies. In this episode:

• Why Wall Street keeps betting on junk debt that’s destined to fail
• How rating agencies rubber-stamp nonsense—and get paid to do it
• Why bailouts are baked into the system, no matter how reckless the play
• What this collapse signals for the broader economy

You can’t make this up. The question is—how many more of these “surprises” will there be?

Episode Transcript

Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.

Speaker 2 (00:16):
Welcome to two thousand and eight. I don't know was
it yesterday? Day before here on the podcast we were
talking about Tricolor bankruptcy Chapter seven liquidation. Everything must go.
A sub prime auto lender going under g shocker, they

(00:41):
make car loans to people without paperwork. That's right, illegals.
I'll guess what I learned yesterday and again it just
goes to show you just quite frankly, again, I don't know.
Think about Quint from Jaws. I don't know if he's
very smart of any dumb. I mean, he's talking about

(01:02):
the shock he's going under the boat. I don't know
if these Wall Street guys, these bankers are really smart
or really dumb. And what I mean by that, why
in the world would you go out and buy the
debt of a subprime auto lender with Donald Trump in

(01:24):
office doing deportations? Why would you do that? And this
company just issued debt this past June and then there's
the real smart part. Maybe they're just doing it because
it's not gonna matter. Hey, if it fails, screws up books,
we're gonna get bailed out anyway. I don't know, but

(01:45):
you can't make this. Uh try color. And this is
what's even more aggravating. See what we have these things
called rating agencies S and P Moody's and they were
completely a joke during the financial crisis. Again, they had

(02:08):
that scene in the film The Big Short, which is
based upon Michael Lewis's book, which was pretty much spot on.
They get paid to rate bonds triple A rated subprime
auto lender, subprime auto lended car loans. Two illegal immigrants

(02:35):
got triple A rated credit from S and P. I
think that's higher than the credit rating for the United States.
As a matter of fact, it could be me, call
me crazy, who believed this. How cannot one look at
this and say bullshit, give me a break Ageah, this

(02:58):
is a system. They this is the system and like uh,
public enemy once saying, can't trust it. Watchdog on Wall
Street dot Com