Thank you, Quazi!
I understand the sentiment of danarhea's post about being dept free, and not needing the banksters...but that's a sentiment from the view point of someone who ALREADY OWNS these things he needs. Someone who's 25 isn't going to be in that same situation.
And as long as the banksters own the majority of the property and capital, THEY are the gate keepers of who get's to get what they need.
Someone sign me up for a sub prime loan for THAT.
I'd probably have to sell the current vette...which....I don't know if I could bring myself to do it....put lot of work into that old girl...
Cars are not like homes. Cars, except certain ones at 20 or so years old, never increase in value. They are not an investment like a home is. Also, many of those sub-prime applicants are not sub-prime through any actions of their own (other than using credit cards and consumer credit to begin with). They made payments, but had interests increase, limits lowered, causing the to show over-limit thus raising their interest even higher. Privacy laws also now "protect" the buyer from disclosing income and out-payments, thus limiting the financing institution to rely on these credit score companies. If I have made payments on time, haven't went over my limit, I could have a very high score and still have the new loan go over what I would actually be able to pay. These type of laws and practices don't protect anyone, but they do ensure the credit agencies make a nice profit. Also, take it from me, if you rarely use credit, have no credit cards and pay everything but your house off early everytime, the credit companies don't much like you either.
Homes and cars are pretty much the only credit items that can come close to being considered necessary. As to why these companies charge higher rates to those who are supposedly, at least according to their score, less able to pay, simple, it is higher risks, they want more back to take that risk.
By the way, anyone here a loan officer who deals in subprime loans? I would like to take out a loan in the amount necessary to seize full control of GM.
I always wondered what would happen if I went to bank for a business loan with a fully drawn out business plan to start my own bank.
"The necessaries of life occasion the great expense of the poor. They find it difficult to get food, and the greater part of their little revenue is spent in getting it. The luxuries and vanities of life occasion the principal expense of the rich, and a magnificent house embellishes and sets off to the best advantage all the other luxuries and vanities which they possess. ... It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion."
-- Adam Smith
I love the NSA. It's like having a secret fan-base you will never see, but they're there, watching everything you write and it makes me feel all warm and fuzzy inside knowing that I may be some person's only form of unconstitutional entertainment one night.