“No Credit. Bad Credit. All Credit. 100 Percent Approval.”

“Fight Against Stupidity And Bureaucracy”

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We had it with the real estate market. Billions of dollars being lent to people who obviously couldn’t afford it.

We saw the trouble, hardship, misery and financial woes that were caused as credit dried up, real estate prices began to tumble, and bankruptcies and foreclosures increased.

And we know the damage it did to the economy when irresponsible banks and other lenders went bust and almost brought down the entire financial system. 

Smart people would learn from such a situation.

Smart people would never contemplate doing such a thing again.

But despite what they would like to have you believe, bankers are not smart people. They’re dumb and they are greedy, a deadly combination.

bad credit 100 percent financing

As a result of the financial crisis millions of Americans (and people in other countries too) have been left with poor credit scores. Yet remarkably they are now able to easily obtain auto loans from used-car dealers, including some who fabricate or ignore borrowers’ abilities to repay. Even if you are bankrupt or living only on social security, banks like Wells Fargo will lend you thousands of dollars to buy a used car.

It’s called the new sub-prime boom, because the lack of caution resembles the frenzied sub-prime mortgage market before its collapse. And it is already bringing misery to many people who have been suckered into taking out loans that they clearly could not afford.

Worse than that, these sub-prime auto loans often come with terms that take advantage of the most desperate, least financially sophisticated customers, with interest rates that can exceed 20 percent. And many of the loans can be at least twice the value of the second hand cars they are being used to purchase!

wall street car crash

This creates a vicious circle for some borrowers, who still owe money on a car that they are trading in when they purchase another one, meaning that the former debt is rolled over into the new loan and they end up, not just paying too much for their current car, but also continue to pay off the loan on their previous car that they don’t even have!

This is the way loan sharks operate. Eventually you end up borrowing your own money and paying them interest for the privilege!

This surge in sub-prime auto lending is being driven by some of the same dynamics that were at work in sub-prime mortgages. There is a veritable deluge of money pouring into sub-prime autos, as the high rates and steady profits of the loans attract investors.

And just as Wall Street stoked the boom in mortgages, some of the nation’s biggest banks and private equity firms are now feeding the growth in sub-prime auto loans by investing in lenders and making money available for loans.

To quote some of the figures, auto loans to people with bad credit have risen more than 130 percent in the five years since the immediate aftermath of the financial crisis, with roughly one in four new auto loans last year going to borrowers considered sub-prime, that is, people with credit scores at or below 640. Wells Fargo, mentioned earlier, made $7.8 billion in auto loans in the second quarter of this year, up 9 percent from a year earlier, and has at least $50 billion in auto loans on its books.

greedy bankers

Even worse, as was the case with sub-prime mortgages before the financial crisis, many sub-prime auto loans are being bundled up into complex bonds and sold as securities by banks to insurance companies, mutual funds and public pension funds. They are all scrambling for these, which in turn creates ever-greater demand for loans, and leads to the banks issuing more and more sub-prime credit.

Unbelievably it’s the same crooks doing exactly the same thing, including using incorrect information about borrowers’ income and employment, so that people who had lost their jobs, or were bankrupt, or living on Social Security, could qualify for loans that they could never afford.

carbuying credit report

Admittedly, the size of the sub-prime auto loan market is only a tiny fraction of the sub-prime mortgage market at its peak, and its implosion would not have the same far-reaching consequences.

For the banks the investors silly enough to buy their bonds, that is.

But the misery is just as great for the people who are suckered into accepting credit they cannot afford.

Illegal it may not be, but immoral it certainly is.

Political leaders who sit astride high horses and purport to be working on behalf of the ordinary people should be doing something about it.

But, as I’ve said before, don’t hold your breath!

obama used car salesman

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Did You Know? Another Fact Finding Mission Is Underway!

“Fight Against Stupidity And Bureaucracy”

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Another fact finding mission has been undertaken on your behalf and here are this week’s results.

The usual random mixture, so hopefully something interesting will be in there for you.

Enjoy.

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did you know2

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Cashews are actually a fleshy fruit.

The nut that we eat is the seed that

grows on the outside of the fruit.

cashews

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There have been 14 vice presidents who have

become President of the United States.

vice-president-of-the-us-seal-plaque

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Thamsanqa Jantjie, the embarrassing sign language interpreter

at the Mandela Memorial who doesn’t know any sign language,

is also alleged to be a murderer.

He was among a group of people who accosted two men found

with a stolen television and burned them to death

by setting fire to tires placed around their necks.

Thamsanqa-Jantjie

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Outside North and South America,

the only alligators found in the wild are in China.

alligator

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Thomas Edison was a great inventor,

but not so good at putting his inventions into practical business use.

For example, despite having the contract to supply cement

for the original Yankee Stadium,

the Edison Portland Cement Company went bust

because it insisted on producing concrete everything,

including cabinets, pianos, and even entire houses!

Yankee Stadium

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Gureng-gureng, Gabi-Gabi, Waga-Waga, Wemba-Wemba, and Yitha-Yitha

are all names of native Australian languages.

Gurindji-yurrk

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Some Americans disagreed with the United States’ initial refusal

to enter WWI and so they joined the French Foreign Legion

or the British or Canadian armies.

A group of U.S. pilots formed the Lafayette Escadrille,

which was part of the French air force and became

one of the top fighting units on the Western Front.

Escadrille Lafayette Banner

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The horse race normally called the Belmont Stakes

also goes by name of the Run for the Carnations.

Belmont Stakes

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Golf legend Jack Nicklaus didn’t earn his nickname,

the Golden Bear,

because of his size, his demeanor, or his hair.

It was the name of his high school mascot.

david-okeefe-golden-bear-2

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The term “Continental breakfast” was coined to

differentiate itself from an English breakfast.

The fried eggs, bacon, and beans of an English morning

are quite distinct from the dainty pastries, coffee, and juice

offered throughout the rest of Europe.

English Continental Breakfasts

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Beowulf is the longest Old English manuscript in existence

and contains about a tenth of all known Anglo-Saxon poetry.

beowulf

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After Leonardo da Vinci’s death,

King Francis I of France hung the Mona Lisa in his bathroom.

(There’s critics everywhere!)

mona-lisa-article-english

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One type of hummingbird weighs less than a penny.

hummingbird

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The letter “J” was the last letter added to the English Alphabet.

Before that, the letter “L” was used in its place.

“U” was the second to last letter added,

and was usually replaced by V.

old-english-alphabet

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Norman Mailer coined the word “factoid” in his 1973 biography Marilyn,

BUT it wasn’t just another word for “trivia”

– he actually meant something that seems like a fact but isn’t actually factual

– and that’s a fact….. or a factoid…. or…. er.

quote-factoids-that-is-facts-which-have-no-existence-before-appearing-in-a-magazine-or-newspaper-norman-mailer

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Is A Plateau A High Form Of Flattery?

“Fight Against Stupidity And Bureaucracy”

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You guessed it.

It’s pun day!

Time to love or hate another selection of bad jokes dressed up as word play.

Enjoy!

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Son, “Dad, what’s an antidepressant?”

Father, “It’s your Mums fat sister after she’s weighed herself.”

antidepressant

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I took my tomcats to get neutered today.

No hard felines.

cat

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I am writing a TV program about a woman in the 19th century

who suffered painfully during her time of the month.

It’s a period drama.

period drama

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I joined a club called Amnesiacs Anonymous.

I can’t remember why.

amnesiacs anonymous meeting

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I’ve been trying to come up with a pun about fabrics.

But it’s nylon impossible.

nylon-poster-web

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Sign on the maternity hospital delivery room door.

“PUSH PUSH PUSH”

push push push

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I saw this bloke chatting up a cheetah.

I thought – he’s trying to pull a fast one

cheetah

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What is the first thing a cowboy says when he walks into a German car showroom?

“Audi!”

audi

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He often broke into song because he couldn’t find the key.

key

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It was somehow inevitable that the Breast Enlargement company would go bust.

bust

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I can always count on my wife to put things into “hysterical” perspective…

stressed-woman-cartoon

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What do you call a very fat psychic?

A four chin teller.

four chin teller

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The chef was surprised when a dessert came back to the kitchen.

It was a boo meringue.

boo meringues

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A group of chess enthusiasts checked into a hotel

and were standing in the lobby discussing their recent tournament victories.

After about an hour, the manager came out of the office and asked them to disperse.

“But why?” they asked, as they moved off.

“Because”, he said, “I can’t stand chess-nuts boasting in an open foyer.”

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I know it’s not Christmas, but….

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