Financial Chaos
by Stoneman [Halifax, Nova Scotia]
If you haven't been living under a rock lately, you may recall the recent financial meltdown of Wall Street banks. Just last week the big 3 automotive groups (GM, Ford, and Chrysler) all told they lost an incredible amount of money in the last quarter. If the US government doesn't guarantee loans to them within the next 3 months, GM will certainly run out of money and go bankrupt.
If you're thinking "Well, I don't work in the US auto industry so this won't affect me much", you are dead wrong. I know for a fact my customers have their customers who ARE GM, Ford, etc. This is a huge deal. It's like pulling out a gear from the middle of a very complicated machine: You know you just fucked it up, but you have no idea how bad it will be.
So while the US (and Barack Obama) try to figure out how much money to print for the big 3, you have to wonder how long this financial crisis / meltdown is going to last. Some experts on Fool.com said "Years" while others say "We have hit the bottom". Personally, no one knows how long and how bad it's going to get. One thing for sure: You can't worry about something you can't control.
And when the phones stop ringing at your local investment houses, you better get your barrel clothes on. When the phones stop ringing, investor trust is gone, and people start doing bank runs (ie. pulling ALL their cash out of their investments). And if you think this financial mess is just limited to poor banking choices on mortgages, it's affecting everyone who needs a loan these days.
Even car loans are now going to be more difficult to get. GMAC will no longer accept customers for leases without a 700 FICO score. Oh, you want to lease a car? Good luck, because GM, Ford, and Chrysler will no longer be offering any enticing leases. You're better off purchasing a used car. Yes, you heard me right: You're better off getting a used car UNLESS you can get a decent (read: Japanese) car at a low (0%) interest rate to purchase.
Buying a vehicle is a terrible investment unless you're going to buy something like a vintage car (ie. 1967 Chevrolet Impala SS). These are dark times ahead indeed. But don't listen to idiots like Jim Cramer who say "Take your money out of the market for the next five years". It's like jumping out of a high rise building when someone yells "Fire!" on the 2nd floor. People need to calm down and stop panicking. I am very hopeful the next US administration has some intelligent plans in place because this financial crisis is not going to go away over night.
If you haven't been living under a rock lately, you may recall the recent financial meltdown of Wall Street banks. Just last week the big 3 automotive groups (GM, Ford, and Chrysler) all told they lost an incredible amount of money in the last quarter. If the US government doesn't guarantee loans to them within the next 3 months, GM will certainly run out of money and go bankrupt.
If you're thinking "Well, I don't work in the US auto industry so this won't affect me much", you are dead wrong. I know for a fact my customers have their customers who ARE GM, Ford, etc. This is a huge deal. It's like pulling out a gear from the middle of a very complicated machine: You know you just fucked it up, but you have no idea how bad it will be.
So while the US (and Barack Obama) try to figure out how much money to print for the big 3, you have to wonder how long this financial crisis / meltdown is going to last. Some experts on Fool.com said "Years" while others say "We have hit the bottom". Personally, no one knows how long and how bad it's going to get. One thing for sure: You can't worry about something you can't control.
And when the phones stop ringing at your local investment houses, you better get your barrel clothes on. When the phones stop ringing, investor trust is gone, and people start doing bank runs (ie. pulling ALL their cash out of their investments). And if you think this financial mess is just limited to poor banking choices on mortgages, it's affecting everyone who needs a loan these days.
Even car loans are now going to be more difficult to get. GMAC will no longer accept customers for leases without a 700 FICO score. Oh, you want to lease a car? Good luck, because GM, Ford, and Chrysler will no longer be offering any enticing leases. You're better off purchasing a used car. Yes, you heard me right: You're better off getting a used car UNLESS you can get a decent (read: Japanese) car at a low (0%) interest rate to purchase.
Buying a vehicle is a terrible investment unless you're going to buy something like a vintage car (ie. 1967 Chevrolet Impala SS). These are dark times ahead indeed. But don't listen to idiots like Jim Cramer who say "Take your money out of the market for the next five years". It's like jumping out of a high rise building when someone yells "Fire!" on the 2nd floor. People need to calm down and stop panicking. I am very hopeful the next US administration has some intelligent plans in place because this financial crisis is not going to go away over night.
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