Subprime Rising

Source: WSJ

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  1. RW commented on Feb 19

    Corollary to Stein’s Law

    Trends that can continue, will.

  2. chartist commented on Feb 19

    I told a friend who defaulted on $25K of credit card debt that the good thing about his situation was the sheer volume of people in the same situation. The economy simply could not be sustained with such a large number of people unable to get credit. It’s sort of like relying on obedience with laws because you can’t put everyone in jail.

  3. guadas commented on Feb 19

    But, but…but we have BETTER “software” now!!!….It’s OK….we’ve REALLY figured out how to “qualify” these people now and we’re only making loans to those that will repay them. Really, it’s true!!! Trust us!!

    On the other hand….let ’em “have at it”. The best bargains were found when things started blowing up last time. Looks like they’re setting us up for yet another opportunity. Loan away suckers.

  4. Willy2 commented on Feb 20

    For many people there’s a very good reason why they take on more debt. Take e.g. cars.

    One can choose to borrow money to buy a (new) car and be able to drive to work with that car and have an income.

    The other option is to not borrow money but that also means having no car at all and not being able to drive to work. But that also means no income.

    I think then the choice is very easy for a lot of people.

  5. EMichael commented on Feb 20

    So, let me figure this out.

    All sub prime lending is less than it was in 2006, but sub prime lending is gaining an increasing share.

    Sounds like climate deniers who concentrate their thoughts on 1998.

  6. DeDude commented on Feb 20

    Subprime is very profitable for the CEO and leadership of the company. Since it is all about what is good for them and not at all what is good for long-term share holders, costumers or the country, we would expect that they will rob and destroy the companies and the economy again and again and again. Capitalism is dying – it’s eating itself from the inside.

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