I am so glad that Obama plans to make sure that "Every credit card issuer has to issue a plain vanilla easy-to-understand, simplest possible credit card...that the average user can feel comfortable with." After all, the butterscotch crunch version was so hard to understand!
Sure, there needs to be reform. That's okay as long as I can charge whatever I want and have the tax payer pay for it, just like my mortgage (I wish!). I think I may just go out and buy some new furniture today so that I can be sure that everyone else in the country can pay for it.
Do I think that perhaps there may be some issues with loopholes in the credit card company policies within every credit card company in the US? Perhaps. However, have people been taking advantage of the system? Of course they have.
What do you bet that the new legislation will help those who have taken advantage of the system, over spending and then being irresponsible when paying their bills. Let me give it to you in the "vanilla" version. They buy and then don't pay. I know it's hard to understand for us "average" people.
There is an argument that the policies may reduce the amount of credit offered to lower-income individuals. Wouldn't that be just too bad? I mean, everyone should have the same stuff in the same amounts shouldn't they? Differences in the way people live are highly over-rated anyway. People should get paid the same no matter what job they get income from, right? Doctor-Fast Food Grill Cook. It's all the same, right? I hope the legislation comes down that we all have to drive the same battery powered cars, wear the same uniform colors, and that we must bow down to the Obama-God so that we don't have to think for ourselves and therefore don't have any consequences for our actions.
Amen.
Showing posts with label subprime loans. Show all posts
Showing posts with label subprime loans. Show all posts
Friday, April 24, 2009
Thursday, April 16, 2009
GM Utilizing Subprime Lending To Increase Sales.
Remember the infestation that has brought the U.S. economy to its knees? Yes, the subprime lending...attempting to entice those to buy who actually cannot afford. Well, GM thinks it can utilize this diseased lending method to increase their car sales. What are they going to do when those who obtain these subprime loans don't pay them...ask for another bailout? Their company's situation seems terminal if they, in fact, utilize this method of enticement.
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GM: Subprime lending? Great idea!
Posted Apr 08 2009, 12:33 PM by Todd Harrison
While General Motors (GM) surely has a hangover from the credit crisis and faltering economy, it's hoping to cure some of the effects of that hangover with the hair of the dog that bit it.
GM’s finance division, GMAC Financial Services, is cutting financing costs and reviving subprime lending to speed up car sales and entice people back into GM showrooms. Subprime lending is the very thing that helped sink GMAC, and in turn, helped accelerate the parent company’s decline.
General Motors has been given a June 1 deadline to come up with a restructuring plan. Bankruptcy is the alternative. GM has relied on $13.4 billion of U.S. government loans to stay in operation since the start of the year.
Whether it's tequila or subprime loans to shaky borrowers, the hair of the dog rarely turns out well. It’s hard to see how it’ll be different this time for GM.
GMAC, which is owned by GM and private equity firm Cerberus Capital Management, announced at the start of April that it would make at least $5 billion available as loans to car buyers over the next 60 days. The end date for the program -- June 1 -- isn’t coincidental: GM must prove to the federal government by that day that it can ultimately survive on its own. GMAC is also providing loans to dealers to help them clear a backlog of unsold cars.
GMAC’s loans will be made available for buyers of both new and used cars. Buyers can have credit scores under 620 -- this crowd being the subprime gang. Just the term strikes fear into the hearts of past and present derivatives traders.
Back in October, GMAC restricted lending to customers with scores over 700. When the government provided GMAC $6 billion in loans, the minimum score was lowered to 620. The cash infusion was meant to allow GMAC to get more consumers the car loans they needed. Now it’s gone back under 620, a return to those halcyon days of lending. GMAC insists that the subprime group would be approved sparingly, but if it wants to show that business is improving, discretion isn’t a good idea.
U.S. auto sales dropped 37% in March, and GM’s sales were down 45%, though slightly better than estimates. This move, as a way to open up credit, smacks of desperation. Obviously, GM believes it must do something to get cars out the door again. But, then again, what does it have to lose?
************************************************************************************
GM: Subprime lending? Great idea!
Posted Apr 08 2009, 12:33 PM by Todd Harrison
While General Motors (GM) surely has a hangover from the credit crisis and faltering economy, it's hoping to cure some of the effects of that hangover with the hair of the dog that bit it.
GM’s finance division, GMAC Financial Services, is cutting financing costs and reviving subprime lending to speed up car sales and entice people back into GM showrooms. Subprime lending is the very thing that helped sink GMAC, and in turn, helped accelerate the parent company’s decline.
General Motors has been given a June 1 deadline to come up with a restructuring plan. Bankruptcy is the alternative. GM has relied on $13.4 billion of U.S. government loans to stay in operation since the start of the year.
Whether it's tequila or subprime loans to shaky borrowers, the hair of the dog rarely turns out well. It’s hard to see how it’ll be different this time for GM.
GMAC, which is owned by GM and private equity firm Cerberus Capital Management, announced at the start of April that it would make at least $5 billion available as loans to car buyers over the next 60 days. The end date for the program -- June 1 -- isn’t coincidental: GM must prove to the federal government by that day that it can ultimately survive on its own. GMAC is also providing loans to dealers to help them clear a backlog of unsold cars.
GMAC’s loans will be made available for buyers of both new and used cars. Buyers can have credit scores under 620 -- this crowd being the subprime gang. Just the term strikes fear into the hearts of past and present derivatives traders.
Back in October, GMAC restricted lending to customers with scores over 700. When the government provided GMAC $6 billion in loans, the minimum score was lowered to 620. The cash infusion was meant to allow GMAC to get more consumers the car loans they needed. Now it’s gone back under 620, a return to those halcyon days of lending. GMAC insists that the subprime group would be approved sparingly, but if it wants to show that business is improving, discretion isn’t a good idea.
U.S. auto sales dropped 37% in March, and GM’s sales were down 45%, though slightly better than estimates. This move, as a way to open up credit, smacks of desperation. Obviously, GM believes it must do something to get cars out the door again. But, then again, what does it have to lose?
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