Absolute control of money corrupts absolutely
Now auto sub-prime Similar to the sub-prime mortgage loans (i.e. loans to people who would not qualify for one), bankers and auto dealers, backed by auto companies, are offering loans to, as the website
www.zerohedge.com says, ‘anyone with a pulse is entitled to a 0 per cent down, 0 per cent interest, 80 month loan on a brand new $40,000 vehicle’. The outstanding value of sub-prime auto loans is $ 1.2 trillion.
During the sub-prime mortgage crisis of 2008, lenders made one assumption and one fiendishly clever move.
The assumption was that home prices would keep rising, so that, if an unqualified borrower defaulted (as was likely) the bank could always recoup its money because the price rise would cover the loan default.
www.thehindubusinessline.com/markets/stock-markets/absolute-control-of-money-corrupts-absolutely/article9823033.ece
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