The blockbuster sales figures from American automakers are coming to a halt as the Government cracks down on lending standards that have created a bubble similar to that of subprime home lending that led to the last financial crisis. Automakers are facing the worst start to a year since 2010 with Ford seeing auto sales contract 2.00% versus expected expansion of 5.80%. The resurgence in this form of lending to risky borrowers threatens to pop as the Government investigates loan underwriting while meanwhile loan defaults are on the rise. Coupled with student lending, these bubbles exceed $1 trillion in loans with any crack likely to impact other parts of the economy. The recent acquisition of Citigroup’s subprime lending unit by AIG also highlights that resurgent popularity of the lending mechanism despite the contagion risks.