Re: Stupid Ford Motor Company
- From: "Gary H. Lucas" <gary.lucas@xxxxxxxxxxx>
- Date: Sun, 18 Mar 2007 01:47:53 GMT
"D Murphy" <spamto154@xxxxxxxxxxx> wrote in message
news:Xns98F4A8083626BW12BU20MU38SY@xxxxxxxxxxxxxx
F. George McDuffee <gmcduffee@xxxxxxxxxxxxxxxxxxxxxx> wrote in
news:9gihv21i2lld8anurhbn9ur3nkpfdm9lpc@xxxxxxx:
<snip>
=========
Ford and sub-prime lending.
The implosion of the sub-prime mortgage companies has been in the
news the last several days. While readings these areticles, I
realized that houses wern't the only thing that had been financed
this way.
GMAC and Ford Credit have both borrowed short [2 year variable
rate notes] and then lent long [60 to 72 months in some cases]
with the vehicles they sold their customers as collateral,
although generally the "nothing down" deals were limited to the
best credit risks.
In all most all cases the owners are "upside down" in that they
owe more money on a used vehicle that what it is worth.
Some web sites of interest on this point include:
http://www.secinfo.com/dR7P7.u2n.htm
http://www.secinfo.com/d2wVq.1M9.htm
google on <"ford credit" "carry trade">
While you are reading all the doom and gloom hold onto your wallet. The
tempest in the teapot is all about getting the government to cover the
bad loans. Nothing more and nothing less. Let's see which corporate
concubines in congress come out wringing their hands about the poor
people losing their homes. Think of their children! Sob!
83% of the people with sub prime loans are still paying on them. As for
the other 13%, they shouldn't have taken the loan, nor should it have
been given to them.
So they all get what they deserved.
Now they want a handout? Pfft.
Does anyone remember when you couldn't even think about getting a
mortgage unless you had 20% down? What happened to that?
The financiers decided that they could give sub prime loans based on
record low variable rates and ever increasing home values. When the poor
slobs can't pay, just take the house and get the money back while turning
a tidy profit. Nice. But now the homes have gone down in value and they
want you and me to pick up the tab for their chicanery. Screw that. They
can renegotiate the loan with the debtor or they can kick them to the
curb and take their losses. Too bad for their luck, I say.
--
Dan
CNC Videos - <http://tinyurl.com/yzdt6d
Yep, bought my first house, a fire job when I was 20, with 7500 down on a
20,000 house and a 6% mortgage in 1973. Bought this house with 20,000 down
on a 76,000 house, and a 14% mortgage! Remortgaged twice, once to make
improvements, once to put my daughter through college, the last at 9%. Paid
the house off 4 years ago. We always paid twice the payment for about 20
years. It's currently worth $400K even in a poor market. We've driven our
cars until the wheels fall off. Currently have two vehicles with 40,000 and
80,000 miles and both paid off. I made less than $30,000 a year for almost
20 years while trying to get a business of the ground. My wife made between
$25,000 and $65,000 during that time and she hasn't worked in the past 3
years. So we are not rich by any means, but we don't have a lot of things
to worry about either.
Gary H. Lucas
.
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