Results 1 to 8 of 8

Thread: GM Ramps Up Risky Subprime Auto Loans To Drive Sales

  1. #1
    King Obama is a traitor! michaelr's Avatar
    Joined
    Dec 2006
    Posts
    89,668
    Thanks
    2736

    From
    FEMA Region 10

    GM Ramps Up Risky Subprime Auto Loans To Drive Sales

    GM Ramps Up Risky Subprime Auto Loans To Drive Sales

    Anyone other than me notice that the bubbles are getting smaller and smaller as shit grinds down?

    Auto loans are heavily leveraged, and the paper crash need feeding. It figures that GM would be on the forefront here.



    Hey with students sapped by their worthless collage loans, they now can buy a $50,000 Chevy. Imagine that, a McDonald's employee with $150,000 debt and a damn Masters to boot.

  2. #2
    Galactic Ruler Spookycolt's Avatar
    Joined
    May 2012
    Posts
    61,666
    Thanks
    11225

    From
    By the wall
    Anyone else have a feeling that the economy is about to nosedive again?

    Even Bernanke is saying it.

  3. #3
    Banned Camp
    Joined
    Nov 2006
    Posts
    49,250
    Thanks
    14700

    I hear GM is doing pretty good. Sure was a good idea for the govt to prevent them from going bankrupt, huh?

  4. #4
    King Obama is a traitor! michaelr's Avatar
    Joined
    Dec 2006
    Posts
    89,668
    Thanks
    2736

    From
    FEMA Region 10
    Quote Originally Posted by Pragmatist View Post
    I hear GM is doing pretty good. Sure was a good idea for the govt to prevent them from going bankrupt, huh?
    Sure, what do you figure it cost us to ship all those jobs over seas? Hell who needs jobs anyway. Nice post Prag, it shows that you have your grip on reality.

  5. #5
    Join, or Die nonsqtr's Avatar
    Joined
    Jan 2008
    Posts
    32,903
    Thanks
    4667

    From
    Vertiform City
    Quote Originally Posted by michaelr View Post
    GM Ramps Up Risky Subprime Auto Loans To Drive Sales

    Anyone other than me notice that the bubbles are getting smaller and smaller as shit grinds down?

    Auto loans are heavily leveraged, and the paper crash need feeding. It figures that GM would be on the forefront here.

    ...

    Hey with students sapped by their worthless collage loans, they now can buy a $50,000 Chevy. Imagine that, a McDonald's employee with $150,000 debt and a damn Masters to boot.
    Good stuff, thanks for the heads-up. This is happening all over, in every industry. Apparently none of us consumers are going to buy anything unless we get free money to do it, just like the banks got free money from Uncle Sam.

    Short story: this economy can not survive without borrowed money.

    We are over-borrowed.

    And what's worse, the geniuses on Wall Street have figured out ways to separate the risk from the investment - the only problem is that all that risk ends up in the global capital pool. That is where it ends up. It doesn't just disappear, they hide it there.

    So what we have, is all these companies running around lean, and if they want anyone to buy anything they practically have to give it away.

    And the assumption is that people will keep working (ie they'll continue to have jobs). And right now, that is a very bad assumption. Corporations are about to start taking big impacts on their earnings targets, that'll mean down markets and layoffs for the foreseeable future. This is a real bad time to buy a car if you can't pay cash for it.

  6. #6
    lka
    lka is offline
    Veteran Member lka's Avatar
    Joined
    Mar 2012
    Posts
    22,976
    Thanks
    2878

    From
    Gone
    Quote Originally Posted by Spookycolt View Post
    Anyone else have a feeling that the economy is about to nosedive again?

    Even Bernanke is saying it.
    I do, this year is strange everything seems fake, typically an election year is a good year, this year started great then kinda flattened out, I think next year will be rough, I was way more optimistic this time last year, I think we will all live but we won't be partying like its 2-0-0-4 !

  7. #7
    King Obama is a traitor! michaelr's Avatar
    Joined
    Dec 2006
    Posts
    89,668
    Thanks
    2736

    From
    FEMA Region 10
    Quote Originally Posted by Spookycolt View Post
    Anyone else have a feeling that the economy is about to nosedive again?

    Even Bernanke is saying it.
    nonsqtr made a good point, we are over extended.

    I talk about the paper crash, I don't know if I coined the term or where I got it from, but it when debt/currencies/bonds&securities fail at the same time.

    Now we went from a liquidity trap to a paper crash. We are a couple years into it now. QE failed and is the reason that have the paper crash.

    QE is a method that should only be used to maintain treasury bills or sovereign bonds level as an economy winds down to failure-land. That's it, nothing more.....goddammit nothing more ever.

    Well hell, that didn't happen. A standard isn't to give monies to banks for their trash paper, then allow them to buy sovereign bonds with that money. Your government buys MBS and CDS from banks and they buy T-Bills. The standard is, the central bank prints then in this country buys from the treasury the T-Bill. Then the central banks hold it until it matures if the economy permits in the years that takes. Then they cash it in and keep the profits and pull the cash from the system. That is standard. That isn't at all what happened.

    The result of all that is the MBS and CDS are crap. They aren't traded and a security in limbo becomes a liability. They need to trade. That places a short on the dollar and T-Bill. The fucking T-Bill just took a beating, and the dollar is a joke.

    Debt is over extended.

    Three papers crashing at once. You fucking bet your ass Bernanke is in panic mode. Just wait, the fucking banks have been singing like a canary, and they are telling you, by trying to point their fingers elsewhere or say gee we made bad ass errors.

    They telling yo, and people best get the fuck off the goddamn couch and listen.

  8. #8
    Join, or Die nonsqtr's Avatar
    Joined
    Jan 2008
    Posts
    32,903
    Thanks
    4667

    From
    Vertiform City
    Quote Originally Posted by lka View Post
    ... this year is strange everything seems fake, ...
    Yep. You nailed it. Everything is fake.

    And the emperor has no clothes. That too.

Tags for this Thread


Facebook Twitter RSS Feed