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| Political Threads This section is for Political Threads - Enter at your own risk. If you say you don't want to see what someone posts - don't read it :hihi: |
06-28-2010, 09:57 AM
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#1
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Registered User
Join Date: Nov 2003
Location: RI
Posts: 21,467
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Wait, there are incentives to help people buy cars (i.e. more new cars sold) and the rate of repossession goes up?
This is Earth shattering analysis.
So what you're really saying is that the cash for clunkers program benefited not only the consumer and auto dealer...but the repo industry as well!
Sounds like a hat trick.
-spence
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06-28-2010, 10:30 AM
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#2
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........
Join Date: Apr 2002
Posts: 22,805
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the only Stimulus i want from my government
comes in a baggie.
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06-28-2010, 11:23 AM
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#3
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sick of bluefish
Join Date: Aug 2003
Location: TEXAS
Posts: 8,672
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Quote:
Originally Posted by spence
Wait, there are incentives to help people buy cars (i.e. more new cars sold) and the rate of repossession goes up?
This is Earth shattering analysis.
So what you're really saying is that the cash for clunkers program benefited not only the consumer and auto dealer...but the repo industry as well!
Sounds like a hat trick.
-spence
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Why would the amount of cars sold affect the "rate"???
The rate should remain flat regardless of the volume of cars sold. What this tells us is that more cars were sold to people that cant afford them. Which, if you remember, buying what you cannot afford is what caused the credit crisis.
so once again, help the failures, punish the successful |
making s-b.com a kinder, gentler place for all 
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06-28-2010, 11:37 AM
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#4
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Registered User
Join Date: Nov 2003
Location: RI
Posts: 21,467
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Quote:
Originally Posted by RIJIMMY
Why would the amount of cars sold affect the "rate"???
The rate should remain flat regardless of the volume of cars sold. What this tells us is that more cars were sold to people that cant afford them. Which, if you remember, buying what you cannot afford is what caused the credit crisis.
so once again, help the failures, punish the successful
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You're injecting the market with a flood of new loans during a recession.
But the purpose of the plan was to create cashflow and demand for manufacturing as well as get older less efficient cars off of the road. Cars that have been repossessed will be sold off and continue to benefit the system.
It would be very difficult to measure the NPV of such an action, but it doesn't seem like a terrible waste of money and probably did some good.
-spence |
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06-28-2010, 12:47 PM
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#5
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sick of bluefish
Join Date: Aug 2003
Location: TEXAS
Posts: 8,672
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Quote:
Originally Posted by spence
You're injecting the market with a flood of new loans during a recession.
But the purpose of the plan was to create cashflow and demand for manufacturing as well as get older less efficient cars off of the road. Cars that have been repossessed will be sold off and continue to benefit the system.
It would be very difficult to measure the NPV of such an action, but it doesn't seem like a terrible waste of money and probably did some good.
-spence
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Oh I get it. I think its called voodoo economics. |
making s-b.com a kinder, gentler place for all
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06-28-2010, 01:17 PM
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#6
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Registered User
Join Date: Nov 2003
Location: RI
Posts: 21,467
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Quote:
Originally Posted by RIJIMMY
Oh I get it. I think its called voodoo economics.
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No, it's just get your criticism in place. I can see some saying the Feds shouldn't be meddling in this, although there's plenty of precedent.
Ultimately it's about the benefit to taxpayers. The repo rate increasing doesn't mean it wasn't a positive action.
-spence |
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06-28-2010, 01:37 PM
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#7
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Registered User
Join Date: May 2003
Location: Easton, MA
Posts: 5,737
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Quote:
Originally Posted by spence
No, it's just get your criticism in place. I can see some saying the Feds shouldn't be meddling in this, although there's plenty of precedent.
Ultimately it's about the benefit to taxpayers. The repo rate increasing doesn't mean it wasn't a positive action.
-spence
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So it's positive when a person has a car reposessed or defaults on a mortgage? This helps the economy in what way? I'm not in finance, so could someone please explain how having your credit rating go in the toilet and losing your house and or car can be good?
Spince, the more you try to spin things, the more people realize you're just a windbag with a better than average vocabulary.  |
Conservatism is not about leaving people behind. Conservatism is about empowering people to catch up, to give them tools at their disposal that make it possible for them to access all the hope, all the promise, all the opportunity that America offers. - Marco Rubio
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06-28-2010, 03:56 PM
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#8
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Registered User
Join Date: Sep 2006
Location: Mansfield
Posts: 4,834
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Quote:
Originally Posted by fishbones
So it's positive when a person has a car reposessed or defaults on a mortgage? This helps the economy in what way? I'm not in finance, so could someone please explain how having your credit rating go in the toilet and losing your house and or car can be good?
Spince, the more you try to spin things, the more people realize you're just a windbag with a better than average vocabulary. |
That is correct sir! So why help people remortgage when they are over their head. Repo is a good thing   :rot f2: |
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