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Losing Faith

Ooh, So That's The Reason Is It?

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GMAC - a company which is failing to make cars that people want so has jumped on the profligate lending wagon. Why make anything when you can stiff people out of money with debt much more easily?

Bradford & Bingley have been buying up their second hand debt portfolio, question is why would GMAC want to to sell it in the first place?

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GMAC - a company which is failing to make cars that people want so has jumped on the profligate lending wagon. Why make anything when you can stiff people out of money with debt much more easily?

Bradford & Bingley have been buying up their second hand debt portfolio, question is why would GMAC want to to sell it in the first place?

My uneducated guess:

Reason for selling: They don't want exposure to the default risk and / or would find it difficult to make write-off provision in the near term - perhaps they want to reserve capital for another venture ?

Reason to buy: Have sufficient capacity to cope with defaults. The overall profit looks to balance the obvious risks.

There is a buyer and seller in every transaction. The basic questions are always be asked.

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BBC news this morning carried the similar story, they were seeming to suggest people were now renting out of choice, rather than because it was too expensive to buy, yeah right. No problem with unaffordable housing then.

Edited by simon99

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Hmmmm - I wonder what those people will do when house prices fall to a more affordable level - will they carry on renting and pay a premium, or hand back the keys and buy a place of their own?

As the situation turns and say maybe two years from now, I have this vision of endless empty 'luxury' shoebox flats and tiny two bed houses sitting empty for the next ten years or becoming exclusively occupied by DSS tenants those being the only people who will live in them.

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BBC news this morning carried the similar story, they were seeming to suggest people were now renting out of choice, rather than because it was too expensive to buy, yeah right. No problem with unaffordable housing then.

:)

I was starting to wonder whether anyone had taken note of the point of the thread in the first place. Still, I don't mind, conversation all the same.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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