Der Zusammenbruch zweier Firmen lässt „Alarmglocken“ schrillen, sagt der Chef der Bank of England
https://www.bbc.com/news/articles/cvgv102n4gwo
Der Zusammenbruch zweier Firmen lässt „Alarmglocken“ schrillen, sagt der Chef der Bank of England
https://www.bbc.com/news/articles/cvgv102n4gwo
18 Kommentare
Are the banks as heavily invested in sub-prime loans as they were in 2008? If so, then yes this is a major problem. If the banks aren’t repeating the same mistakes and structuring entire portfolios around such businesses, and if all the measures that governments have put in place work, then it shouldn’t be a major issue.
Auto loans always have a high failure rate compared to mortgages, and the failure rate is built into company financial plans. It depends on how the companies were financed, and what counter party risk is involved. If backers used holdings in auto finance as collateral for larger loans, well it might be something. Probably not a big thing. The subprime issue had a lot to do with no one understanding that they held such loans because issuers of bonds holding a pile of steaming garbage slapped their own high rating on them and that was fraud. Then they sold the bonds…
> car parts supplier First Brands and subprime car lender Tricolor
I hate this trend to allude to the real info but not put it in the title.
You know the scene in The Big Short where the hedge fund guys go to Florida and realize how bad the housing market is? I live in a major metro middle class suburb and it’s shocking the amount of houses with $200k worth of car loans sitting in the driveway. Guys have to have the $90k Platinum F150 and the wife needs a Yukon XL for their 2 kids, it’s crazy.
I’d be more worried about all the companies going all in on AI when they realise there’s no actual profit to be made for both the Energy used and consumer desire for it.
Let them fail this time. No more bailouts.
Don’t buy what you can’t afford. Finance is a scam. Even reasonable mortgages on housing results in you paying twice the sale price after interest is applied. Stop buying in to this corporate theft.
I’m taking a loan out right now for BYND and riding it to the moon.
Also PrimaLend just went bankrupt this morning.
No it’s when they don’t collapse and get a free ride that we get fucked
Tricolour specialises in providing car finance to migrants in America or green card holders. It’s one of the first things you do when you get there – get a car so you can travel to work. With ICE intervening and kicking migrants out the supply has dropped and existing loan holders are too scared to pay
This is what I’ve been saving for bring on the reckoning
Most of the times a crisis is followed up by hard times, but after that a little uplift because most democracies demand betterment after.
I don’t see it this time, we’re living in a system that would even have the most greedy robber baron go: yeah maybe I should share a little.
Our robber barons are psychopathic sociopaths that don’t share that mentality. Soon AI will hit, and people like Musk or Zuckerberg don’t fucking care. They’ll happily let us live like feudal slaves again.
We the people failed in stopping our overlords years ago.
Yes – why don’t companies buy secondhand cars? You can finance them just the same, just save 20% of the cost?
Do they want Mark Carney back to help solve this problem???? As a Canadian I think he would be a good choice.
I’ve been warning of the car finance market for years. Its fucked. Look what the Taycan has done to Porsche as an example. The future value on paper doesn’t mean a damn thing if you can’t sell the car after the lease ends.
My brain is itching at “two firms collapses”
Canada insists on strict guidelines for American based banks and lenders. Our way or no way I hope that doesn’t change.
I feel badly for the people affected though.