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11/20/2012

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Ken Barrows

And I wonder why people borrowing hand over fist to purchase a rapidly depreciating asset is the kind of activity TPTB want.

Bill McDonald

And speaking of EZ credit, my bank which will remain anonymous but which has been recently rated the best in the nation for "rock solid" strength, just sent me a "payday loan" offer which would be paid back out of my account by immediate deduction and at a "rate lower than payday loans" per the offer.

U.S.A. The EZ credit car loan and Payday loan capital of the world.

Oliver

If you're on your last legs financially, you can't get a job and no longer hold any hope of getting one, and your home is at risk, and you're not sure where next week's food will come from - heck, go get a new car using a never-never loan and ride into the suicide sunset.

John D

Ken, TPTB LOVE when we do things like buy depreciating cars. GDP is all about consumption, not assets or net worth. The quicker something depreciates and wears out, the quicker you can 'consume' another car and increase the GDP.

Brian M

The Smart Money is investing in the repo business.

JohnWDB

Silly Dave--you forgot Krugman's law of diminishing debts. If I take out a loan on a car I can't afford now, it may seem to overwhelm my meager income. But if I lock in a low interest rate, the debt will be much smaller relative to my future income, which I can be sure will increase exponentially between now and some future date. So it is written in the book of Krugman...

Ben

For 'Credit Invisibles,' A Market Takes Shape: http://online.wsj.com/article/SB10001424127887324307204578129060604412552.html?mod=googlenews_wsj

Interesting read.

There is WSJ pay-wall, however, you can easily bypass it by entering a google search for the title of the article "For 'Credit Invisibles,' A Market Takes Shape," and then clicking on the google generated link. You can also bypass FT's pay-wall by using the same method.

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