NPR  Oct 16  Comment 
Growing numbers of lenders are getting tech savvy, remotely disabling debtors' cars and tracking customer data to ensure timely payment of subprime auto loans.
SeekingAlpha  Oct 16  Comment 
By The Double or Nothing Trader: The Great Recession sent a message to the mortgage community. A message that the risk of subprime borrowers, coupled with the securitization of those loans, can lead to an economic disaster. Of course there were...  Oct 12  Comment 
Auto loans arent as big as the housing bubble, but its a growing disconnect between Wall Street and the people it lends to Carl runs an auto disposal service in rural Tennessee, dismantling older cars, selling the individual parts, and turning...
MarketWatch  Oct 10  Comment 
Subprime auto lending may be growing, but there are reasons from both the borrower and the lender side why it shouldn’t impose the kind of hurting on the economy that subprime home lending did, an analyst said Friday.
MarketWatch  Oct 10  Comment 
Lawrence G. McDonald says to buy certain beaten-down commodities, writes Michael Brush.
New York Times  Oct 8  Comment 
Citigroup is preparing for an initial public offering of OneMain Financial, whose loans carry interest of up to 36 percent and are often used by borrowers to pay for medical bills and auto repairs.
Motley Fool  Oct 5  Comment 
Think mortgage lending is the most dangerous to a bank? Think again...
Forbes  Oct 3  Comment 
Quicken Loans founder Dan Gilbert, featured in the latest Forbes 400 issue,  built a $4.2 billion fortune by selling mortgages online. Now he's funneling a big chunk of his money into Detroit real estate and fledgling startups. Both sound like...
Financial Times  Oct 3  Comment 
Demand for bundled car loans is so strong gimmicks are superfluous
Wall Street Journal  Oct 2  Comment 
Citigroup's plans to get rid of its U.S. subprime-lending unit, OneMain Financial--after a yearslong process--would mark a major step in the transformation of the bank following its financial crisis-era woes.


What happened blaicasly was because of assuming that a trend was permanent. In the financial world, this is a form of mental disorder. Trends are why anyone could be a day-trader and make money, for a while. Their impermanence is why anyone that didn't get out of that in time lost their shirts. The subprime loans were designed to churn the loans. You had loans that were fixed for usually two years, then would become variable. The whole intent was for the borrower to refinance in two years, again generating all of the bank's new-loan fees. The trend for real estate to appreciate rapidly was counted on to continue to keep this attractive for the borrower. Borrow 100 with 5k in costs to pay off a loan of 95, wait two years, borrow 105k with 5k in costs to pay off a loan of 100, wait two years, borrow 110k with 5k in costs to pay off a loan of 105 but then the trend didn't cooperate by giving a home value of 110k, and the balloon broke. People still had the same house they did, but now a loan for more than they originally paid for it, and they can't get refinancing, and can't sell it for what they owe. Trends are temporary. People that think otherwise will eventually lose money. Now, how do you know when a trend is coming to an end? There's a story about the Crash of '29 about a broker who was getting a shoe shine, and the shoe shiner gave him a hot tip on a stock. He realized that when shoe shine boys were giving stock tips, the market was about to crash and he got out. During the day-trader era, there were stories about bus drivers and janitors making huge money in day-trading, just before that went south. How many times have YOU seen people offering to help people get loans in their answers right here on Yahoo, offers totally unconnected to the question being asked? It was a trend. Now it's not.

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