Lenders Again Dealing Credit to Risky Clients

#1
myrobbins7

myrobbins7

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#1
Annette Alejandro just emerged from bankruptcy and doesn’t have a job, and her car was repossessed last year. Still, after spending her days job hunting, she returns to her apartment in Brooklyn where, in disbelief, she sorts through the piles of credit card and auto loan offers that have come in the mail.

“Even I wouldn’t make a loan to me at this point,” Ms. Alejandro said.

http://www.nytimes.com/2012/04/11/b...o-the-lucrative-subprime-market.html?_r=1&hp#
 
#5
#5
Credit cards and auto loans are easily recouped debt though through repossession, right? And they probably have ridiculously high interest rates attached so it's really win-win for credit agency regardless.

The risky lending in the housing market had much more far reaching effects on the economy than those can.
 
#6
#6
I'm waiting for the point when they package this bad debt into something that disguises it - I will note the names of the people responsible and claim their souls.
 
#7
#7
It's good business for the banks.
The high risk clients that are trying to rebuild their credit situation will pay a very high percentage rate and the banks makes a ton of money.
If the bank gets in trouble with too many bad loans that cannot be collected, hey the good ole USA Government will bail them out, AGAIN.
It is a win win for the banks as long as we keep re-electing our outstanding congress and senate members.
 
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#8
#8
They won't make those offers if they aren't making money off them. Not sure how this correlates to the housing bubble, which was driven by speculation and greed of both Wall Street and consumers.
 
#9
#9
Weezy said:
Credit cards and auto loans are easily recouped debt though through repossession, right? And they probably have ridiculously high interest rates attached so it's really win-win for credit agency regardless.

The risky lending in the housing market had much more far reaching effects on the economy than those can.
Click to expand...

Credit cards are unsecured debt. What are they going to repo ?
 
#10
#10
Weezy said:
Credit cards and auto loans are easily recouped debt though through repossession, right? And they probably have ridiculously high interest rates attached so it's really win-win for credit agency regardless.

The risky lending in the housing market had much more far reaching effects on the economy than those can.
Click to expand...

Either way it's crap that inflates the economy. My wages will stay relatively the same as prices inflate.
 
#11
#11
lawgator1 said:
They won't make those offers if they aren't making money off them. Not sure how this correlates to the housing bubble, which was driven by speculation and greed of both Wall Street and consumers.
Click to expand...

Manipulated interest rates to encourage lending.
 
#12
#12
I get 1-3 every day and they seem to never stop. Of course I have great credit :p
 
#16
#16
n_huffhines said:
Manipulated interest rates to encourage lending.
Click to expand...

This probably holds true; however, a combination of financial regulatory repeal and malfeasance, as well as risk-eliminating instruments and extremely high leverage ratios created the doomsday scenario. There were people saying prior to 2008 that what was going on was going to create a massive calamity, and they already knew quite specifically why it was going to happen. The housing bubble would have wound up like any other bubble, but the free for all that started in the late 90's was what created the massive systemic risk.
 
#18
#18
lawgator1 said:
They won't make those offers if they aren't making money off them. Not sure how this correlates to the housing bubble, which was driven by speculation and greed of both Wall Street, ATTORNEYS and consumers.
Click to expand...

fify
 
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