Note from a ford dealer regarding the bailout.

It is completely different than any other consumer loan because a person or company in the shape of these companies WOULDN’T QUALIFY FOR A LOAN IN THE FIRST PLACE! So it is a bailout. I guess we can debate all we want but we can wait until March to see what happens. Maybe a miracle will happen, but actually they will be looking for another handout by then. I guess I don’t’ know how that reaches a requirement. I guess I am a bit skeptical, but really what will happen if they don’t meet the requirements? You really think the government is going to get the money back? Sure.

I just got approved a couple weeks ago for a boat loan, but that was a credit union so maybe that is a bit different. What? You mean they qualified for a loan with a down payment of 35%? No way. You mean they require down payments now? Wow. What a concept. How about the others? Did they want to get that new car with zero or very little down? Yeah, maybe those days are gone. Let’s see, don’t they say you lose like 20% value of a new car once it leaves the lot. So don’t you think the requirement should be at least 20% down? Say, why does a guy in the parts department know what people credit scores are? Boy that makes me happy that knowing that the finance guys are out yapping to everybody about people’s personal information. I guess that is a different story.

Hmmm…I think I may have said this before…you need to have a solid banking industry. If consumers lose faith in the banking system, the country basically fails. Now that money may not be spent right, but the concept is correct. Nothing happens if a car company goes bankrupt. Read a little history.

OK, there is no point going round and round on this stuff anymore. I think this was a horrible idea. I guess most others seem to think it is a great idea. I guess I am wrong so I will promise to stop now. Have a Merry Christmas!

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It is completely different than any other consumer loan because a person or company in the shape of these companies WOULDN’T QUALIFY FOR A LOAN IN THE FIRST PLACE! So it is a bailout. I guess we can debate all we want but we can wait until March to see what happens.

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I understand what your saying. I’m not sure you or I actually know the specifics about the qualifications of credit the big three have. Still it seems plausible you or I wouldn’t qualify if we were in their shoes. Yet farmers get loans everyday in similar situations it seems. Maybe they are bailed out and have a failed business plan too though?

We both know that consumers have NOT been required to have 20-30% down payments many many years. So is it the banks fault or the consumers fault for having too small a down payment? Obviously having a good down payment is a good way to help secure a loan but it is far from fool proof. Still if banks won’t loan money to someone with a 700 plus credit score then what are they doing with it?

And about my position in the dealership. You know 100% nothing about this facility or my role within it. Your assumptions are more than a little off. To be clear there is no “yapping” of any personal information here.

We’ve both agreed previously the banking industry has to be solid. Yet the entire focus here is on the “bad car makers”. How dare they ask for help, after all? Like the rest of the country, and our elected officials, we continue to spend time hacking over the wrong topic. But no one wants to delve into the banking SCAMS the government dug us into. Not exactly sure why that might be.

Nothing happens when the car companies go broke? Ok, I’ll take your word for it since neither of us, nor anyone else, has gone through anything of the magnitude that the failure of the big three would be. But maybe it was taught in college?

Here is the problem as I see it. We let the foxes in charge of the hen house. After awhile we realized they had killed most of the hens. So what do we do? Allow the foxes to devise a plan to save the rest of the hens. Sounds flawed to me too.

You also have a Merry Christmas!

well since we touch on it repeatedly in just about ANY economic discussion… this article debates the reality of the credit crunch.. even the experts dont agree… or maybe more precisely they dont all have the same data.. and what they have they dont interpret the same way…. obviously its a complex issue and no simple statement can summarize the problems….

http://www.time.com/time/business/article/0,8599,1868392,00.html?xid=newsletter-daily

I dont know how to hotlink this so it picks up the commas!.. so the link per se doesnt work unless you get the whole think commas and all…