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Smart Shopper Owe more than it's worth... I'm upside down and I can't get up!
1160 messages, Last post on Oct 22, 2009 at 7:11 PM
You are in the Smart Shopper Forum. Your Hosts are kirstie_h & tidester
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I don't think people understand how this loan business works. The traditional way was that the bank would loan you money and then collect the payments over the years to make the original amount plus interest back. So, banks had vested interest to make sure that they will get their money back. This all changed recently, when banks were allowed to package these loans into securitues and sell them on the securities exchange. So, the banks no longer had to make sure that you would be able to pay them back, they knew they could make money tomorrow by selling your loan as a securities paper. So, if you lend Pete money on Monday with the promise that he will pay you back on Friday, but he does not pay, you are not going to lend him anymore money next Monday. However, if you lend Pete $20 on Monday, and sell his loan to Joe on Tuesday for $25, then when Pete comes back to you next Monday for more money, you lend him some more money, because you don't care anymore. So, all these foreign nations that trade with us, have these huge sums of US currency that they were pumping into these securities papers. All over sudden, they were not seeing the reutrns they were expecting, the stopped buying the securities, and the dollar started to lose value. Since oil is traded in dollars, devalued dollar, made the oil look very expensive.... I hope it clears up the global picture... We are in for a long long recession and the dollar may be surpassed by the Peso one day. |
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| Dub Schwartz chimes in on being upside down on the Alternate Route today! | |
A reporter with a large national newspaper is interested in talking with consumers about their experience during this economic downturn and if they might have lost or had their car repossessed. If oyu are in this situation,, please contact Chintan Talati at ctalati edmunds.com no later than Friday, May 9.
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I have a lease it ends in 8-2010 i want to keep this auto now when its time take it back do any of you thinks its in the best interest of me to get a new one i am not leasing again though. With the deals going on now & the economy the way that it is. When 2010 comes around will i be in a position to get a good deal thats all guys thanks. .
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Replying to: mookie14 (Dec 05, 2008 11:35 am)  Hmmm, I think I have a better chance of predicting the 2010 Kentucky Derby winner.  Best regards, Shipo |
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I have a relatively expensive german car that I can afford the payments on. Got it at 2.9% interest in 2007. I'd like to trade it in for something cheaper because in today's economy, I just don't feel comfortable with a payment that exceeds $750/month. I'm trimming costs in other areas of life...is it conceivable to think that one could trade in a BMW for a Honda and have a lower payment (without sinking in $10k to make it work)? Have any of you "traded down"? |
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Replying to: phollie (Mar 14, 2009 10:00 am) In this awful economy, plenty of people are trading down. For many, it's a sensible way to manage expenses. |
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Replying to: phollie (Mar 14, 2009 10:00 am)
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Replying to: volvomax (Mar 14, 2009 2:42 pm) |
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Replying to: phollie (Mar 14, 2009 10:00 am) I'm trimming costs in other areas of life...is it conceivable to think that one could trade in a BMW for a Honda and have a lower payment (without sinking in $10k to make it work)? Have any of you "traded down"? Sure, you give me your BMW and I will give you my Honda. You pay your BMW rate, and I will continue paying my Honda rate. Deal? Honestly, if you can afford to pay for it, keep paying. Don't fall for a knee jerk reaction. If you really want out of it, be prepared to lose a shirt in the deal. No one really wants a really expensive car right now. And people who want them, they can buy brand new one from the dealer without hassle of private transaction. Good luck. |
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