Posts Tagged ‘loans’

         Ok, I dont understand this whole financial mess…I admit that.  I am no financial genius.  However, I do know that if you keep spending money that you dont have…you go deeper in debt.  How in the heck is the government going to get money from people who dont have it to give?  From taxpayers….correction…from taxpayers who have JOBS.  What about all of those people who dont have JOBS  or will soon be loosing their JOBS?  The American family is in crisis.  Many dont have jobs or they have to have more than one part time job to make ends meet.   Some don’t even have homes because they have lost them to foreclosures.  Some of their family members dont have jobs or can’t make enough to pay their bills.  But when you are barely making it…you can’t help anyone else out in a meaningful way either.  The Government financial recovery plan (mess) is mirroring our personal lives…they just dont know it yet!  Still, some of the leaders are using fear to try to get people to put their stamp of approval on their plan of action; they are saying that this might not be the right answer…but we have to do something or else!

         Obama’s treasury chief has announced that this country needs 2 trillion dollars to save the banks.  This is on top of the bailouts that have so far shown little return on the investment for the average American citizen.  Where is this whole thing going to end?  Why not give the money to the citizens and let them dig themselves out of their own very deep holes first?   That in turn might just have the added benefit of allowing them to pay off their loans and homes to those banks and businesses that made the bad loans in the first dang place!

          We are being told that all of this lending and loaning may or may not work….that they might make mistakes.  But that doing nothing would be a catastrophe.  How do we know that?  Maybe those businesses and banks should go under.  After all….once this money is loaned to these businesses and banks…they are going to expect tax payers to go into debt once again with these banks and businesses to circulate the money.  Who in their right mind is going to create an even bigger debt load on themselves with such uncertainty hanging over this country’s head?

        After President Obama’s treasurer spoke the Dow Jones dropped 3.5%.  This is traumatic news to everyone.  Confidence is more than shaken….it has suffered severe trauma.  We may never recover from this extreme mess as a nation.  This isn’t some meaningless recession.  We are bleeding money and we dont have the confidence in our leaders, our banks, our businesses to recover from it. 

         Former Presidential candidate, Senator John McCain calls this plan “generational theft”.  He says we are stealing from future generations their hard earned dollars and laying on them debt of incredible proportions.   He is right.  Where will it end?

           The Government thinks it is going to help everyone out by creating JOBS and bailing out banks and certain industry giants.  Helloooooooooooo…is anybody home out there?   How in the world are they going to do this?  By hitting the taxpayers out even more than they have already.  So far, no one has had a solution that has made a positive enough impact to change the direction of this massive financial failure!  What makes them think that throwing more money into the mix is going to make things better?  Can a government file bankruptsy…cause that is what it feels like is happening here…what is the old saying….borrowing from Peter to pay Paul?


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      With 2008 behind us…and the new year stretching out before us…many consumers are trying to figure out how to hang on to what they already own and trying to stretch the money that they have to meet their obligations.  As you can imagine…getting consumers to go out and spend money at a time when job loss is at an all time high and debt load is always threatening to tip the balance of the family budget is all but impossible.

        An automobile company has taken a new tactic…in fact…probably setting a new standard for other automobile companies in trying to get the public to strengthen their confidence in the economy by purchasing a new vehicle.  All of the old tried and true tactics such as 0% financing and cash back refund programs are not inspiring the consumers to run right out and add to their debt load in such uncertain times.  Sales of new vehicles has fallen since 2007 quite dramatically.  Hyundai has tempted the public to purchase through a new sales tactic; one that sort of tempts people to extend themselves financially.

        This is fine and good as long as the consumer doesn’t over extend their financial obligations.  I suspect other automobile companies to offer something similar to increase their sales.  The deal is this…Hyundai is offering to take the vehicle back without repercussions under certain circumstances.

        If the vehicle purchaser should lose their job within the first year after purchase…they can return the vehicle and walk away from their obligation up to $7,500.  Or if the purchaser should become disabled or lose their income involuntarily, the offer is the same…they can walk away from the loan and return the vehicle. 

         One thing is probably sure…this will more than likely increase sales…but, one would hope that the lenders have learned a little something-something from the financial crisis and make sure that the consumers that they extend vehicle loans to are in a position to purchase without overextending themselves financially.  This absolutely can not be allowed to contribute to the negative situation that this country has found itself in.  One thing we do not need is to find that the new deal allows people to put themselves into deeper financial hardship that results in an increase of repo’ed vehicles.   Will this sales tactic inspire those in a position to purchase and add to the consumer confidence that businesses and governmental leaders are desperate to see?  Only time will tell!  What are your thoughts on the subject?

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