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GMAC dramatically cut back on leases in September
Leasing is down industry-wide by about 50% from 2007 levels, but General Motors' captive credit arm took an even bigger bite out of its vehicle leasing in September. GMAC leased only 2% of all GM products in September, and the decision to do so had everything to do with the recent events of the financial markets. While leasing was down GM-wide in September, GMAC and Chevrolet were hit the hardest. The General's two volume brands accrued only .6% and .7% of its sales through leasing, compared to 11.2% and 13.6% respectively last year. Leasing is virtually non-existent for vehicles with low residuals, and Cadillac, which typically leases over 40% of its vehicles, leased at an 8.4% clip last month.
Nobody on Wall St. is purchasing securities right now, giving GMAC very little money to offer leases to its customers. A controlling interest in GMAC was purchased by Cerberus well before the private equity firm took control of Chrysler. Chrysler stopped leasing all together on August 1 in response to the huge losses it took on returned leases of SUVs and trucks. Both GM and GMAC say the break from leasing is only temporary, but with the financial markets still in flux, don't expect this trend to reverse itself any time soon. Leasing is down industry-wide by about 50% from 2007 levels, but General Motors' captive credit arm took an even bigger bite out ... more -
Mortgage lending 'drops 95% in a month'
A 97 percent year on year drop was also registered by the "dire" new Bank of England figures.
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China banks told to halt lending to US banks
Chinese regulators have told domestic banks to stop interbank lending to U.S. financial institutions to prevent possible losses during the financial crisis, the South China Morning Post reported on Thursday.
The Hong Kong newspaper cited unidentified industry sources as saying the instruction from the China Banking Regulatory Commission (CBRC) applied to interbank lending of all currencies to U.S. banks but not to banks from other countries. Chinese regulators have told domestic banks to stop interbank lending to U.S. financial institutions to prevent possible losses during... more -
Robert J. Samuelson - The Confidence Game
It's all about confidence, stupid. Every financial system depends on trust. People have to believe that the institutions they deal with will perform as expected. We are in a crisis because financial managers -- the people who run banks, investment banks, hedge funds -- have lost that trust. Banks recoil from lending to each other; investors retreat. The ultimate horror is when everyone wants to sell and no one wants to buy. Paulson's plan aims to avoid that calamity It's all about confidence, stupid. Every financial system depends on trust. People have to believe that the institutions they dea... more
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Fed Leaves Key Rate Unchanged - washingtonpost.com
Central Bank Resisted Pleas From Wall Street
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Opinion: Few options amid financial storm - Washington Post- msnbc.com
You know you're in a heap of trouble when the lender of last resort suddenly runs out of money.
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Fed ready to aid investment banks
The Federal Reserve may extend into next year a facility that gives investment banks access to emergency cash if the financial turmoil persists.
The lending facility was put in place in March to stabilise the financial system as Bear Stearns collapsed.
Fed chairman Ben Bernanke also called on Congress to give the central bank more authority to supervise markets.
The Fed will issue new rules next week aimed at cracking down on dubious lending practices.
(End of excerpt)
Full article at link by BBC News
Photo: AP The Federal Reserve may extend into next year a facility that gives investment banks access to emergency cash if the financial turmoil... more -
U.S. Falling Behind in Innovative Cell Phone Use
Many parts of the world are leapfrogging the U.S. in the use of cell phones and other technologies for social and economic empowerment because they are not burdened, or advantaged, by the infrastructure of the past. Many parts of the world are leapfrogging the U.S. in the use of cell phones and other technologies for social and economic empowerment... more
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PhilanthroCapitalism Speaks Out
"I like to call this new system creative capitalism -- an approach where governments,businesses, and nonprofits work together to stretch the reach of market forces so that more people can make a profit, or gain reocognition, doing work that eases the world's inequities." "I like to call this new system creative capitalism -- an approach where governments,businesses, and nonprofits work together to ... more
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Payday lenders are ripping off American families
Payday loans taken out for up to 120 days are limited to 403 percent annual interest. The Lenders get around this by pushing people to 121 day loans so they can rip them off even worse. What a scam. Payday loans taken out for up to 120 days are limited to 403 percent annual interest. The Lenders get around this by pushing people to... more
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The US sub-prime crisis in graphics
The US sub-prime mortgage crisis has lead to plunging property prices, a slowdown in the US economy, and billions in losses by banks. It stems from a fundamental change in the way mortgages are funded.
If you are like me, you have probably heard about the sub-prime mortgage crisis, but have no idea what it really means, this article explains very clearly what is happening in this country.
Eye opening article! The US sub-prime mortgage crisis has lead to plunging property prices, a slowdown in the US economy, and billions in losses by banks. ... more
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