I'm far from having a handle on that whole thing. On the one hand, it surely looked like a heist. On the other, it's interesting that the money got spread around so far and wide. If it was a heist, then who was behind it (besides the obvious frontmen) and how did they profit?
One thing seems certain, there was a lot of phony paper generated by investment banks. They sold the phony paper, pocketed the profits, and now we get to prop up the banks that lost their asses holding that paper. Who knows, the bailout could have been legitimate. All the 'stealing' may have taken place in the generation of the CDOs, CDSs, and perhaps something to do with these mortgages.
Like Iraq's WMD, perhaps we'll learn the story after the bandits are long gone and counting their loot. (I think the threat of Iraq's WMD is best understood through the Office of Special Plans in the Department of Defense)
It seems like the banks got a free ride on their financial troubles, but if I am late or unable to make a truck payment, oh man, the letters of threats to repo my truck, ruin my credit, take me to court will be coming in from those same banks that got bailed out by the feds.
Banking & their services are changing for sure. while the banks get money to get them out of debt, they in turn are raising all their fee's on their customers. also raising, or cutting off credit. I am so fortunate. I was in my bank, well actually my credit union. got pulled aside by one of the women I know well. we talked a while about the whole financial situation. not only is my credit union financially strong. they have great offers.
I have never borrowed money from a bank. ever. I found out that I could get a lot of money for 3 & 1/2 % 2 or 3 hundred thousand if needed. that was really nice to hear. and it would take 3 day's & no cost to me at all. glad I am with a credit union instead of a traditional bank. I would advise others to look to local credit unions also.
Credit unions usually offer simple interest loans whereas banks use compounded interest rate loans. You could have the same interest rate at both types of lenders and pay less to the credit union due to how rates are calculated. Credit unions are owned by the shareholders or customers. Banks are owned by stockholders. The problem with credit unions, just as with banks, is that some don't lend money on class 8 equipment.
The problem with credit unions, just as with banks, is that some don't lend money on class 8 equipment.[/QUOTE]
You know you may be right on class 8 equip.. what my banker had mentioned to me was a heloc. because of the property I own. went over some numbers, I had no idea it was so easy. Like I said I have never borrowed money. dont plan on now, but is was nice to hear I could get so much at 3-1/2 %. makes me glad I bought property instead of chrome. just thinking, why pay 10 % or more on a traditional bank loan for a truck , when ya can get it for so much less on a heloc.
I am glad to hear that you are debt free, heavyhaulerss. Those who have little or no debt will get along much better during these difficult times. Credit lines have been suspended and cut in many cases by these banks who have gotten a bailout.
