Detroit Three executives

OK, sorry about the comment about your daughter.

That being said, I really wonder how you would know that? Is it from the
newspapers or how?

 

What is a "credit problem?"

In the "olden days" companies that ran cyclical seasons had things they
called
"cash reserves" They would scoop out a chunk of money from the cash
reserve,
fund whatever operation from it, and the cash reserve would then be replaced
by scooping it out of the profits of that operation.

Companies could make a little money off interest on this reserve, or make a
bit more
loaning it to other companies if they had extra.

Then 10-15 years ago the eastern bankers convinced a lot of those companies
that somehow it was better business to run with NO cash reserve, and
whenever
they needed money for some operation, to scoop the money out of the bank
and pay the bankers interest on it, then when the profits came from whatever
operation, they would scoop even more money out of the profits of their
operation
to pay back the bankers.

Frankly, my fervent hope is that credit is NOT EVER unfrozen, not at least
for
many, many years. I would like to see all the companies that fell for that
bankers
line of shit to go out of business. Not all companies fell for this and
squandered
away their cash reserves.

Banks need to get back into the business of making money by paying out 2%
on passbook checking and savings accounts, and charging 4% on 30-year
fixed mortgages. With the volumes of money the banks make, a 2 point spread

on just doing this only would make all of them many, many billions of
dollars
of profit.

Ted

 

....a place where they can do the least amount of damage.

The lateral arabesque (a rather elegant descriptive name coined by Dr.
Laurence J. Peter).

 

Time Magazine, yesterday at the doctor's office.

Housing in this part of Texas continues to move, and people are still
flipping in Austin
and other desirable markets.

 

Here in Canada our banks are in good shape, our car sales are too.
Retail surprisingly good.
The banks won't lend money to the car dealerships. Now how can that be
in Canada, where there is no real recession yet but not Austin?

 

We are wondering that too... Certain areas like Austin are high level,
relatively
low cost (compared to other areas in the USA) areas. Lots of people with
money
move to the "Hill Country" of Texas.

There is money to be had, if you have a decent credit history.

Floor plan loans are another deal...GM has provided this service in the
past, I believe,
just so that dealerships can keep products on display. It was relatively
cheap.

Car loans to the consumer are a different subject. Certainly not every Tom,
Dick, and Harry
can walk in and get a top of the line car for nothing down and no credit
history. But, we
are not hard hit here in Texas at the moment. Are holding our breath,
waiting for the other
shoe to drop.

 

why were they required to have a plan for loans and fannie may and freddie
mac and aig had no plans or guide lines and were GIVEN the money???????????

 

They basically took over the loans for the houses in the case of
fannie and freddie.
No more really bad loans issued and everything put on hold.

It would be possible to do the same for GM and friends.
Take over all the loans on cars and stop producing more crap.
It is basically what will happen anyway.