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Lenders in search of a reasonable yield - and still wary of mortgages - are easing standards for...

Lenders in search of a reasonable yield - and still wary of mortgages - are easing standards for auto loans, leading to a resurgence in ABS backed by the paper. A surge in lending, the average age of autos on the road of 11 years (a record), and beaten-down shares of GM and F? Something doesn't add up.
Comments (12)
  • That's OK. I was bad at math too.

     

    The missing variable is the global economy.

     

    So, there are too many unknown variables for the equation to be solved.
    14 Aug 2012, 12:53 PM Reply Like
  • i'm hanging on to my ford stock.
    14 Aug 2012, 01:44 PM Reply Like
  • I'm short your Ford stock.
    14 Aug 2012, 03:40 PM Reply Like
  • The factor that doesn't make sense is the affinity of Americans for cars made by anyone but our own manufacturers. Look at any group of cars on our roads and see how few are Chevies or Fords. Even if some foreign brands are partially manufactured here, all the profits go abroad. We're shooting our economy in the foot and wondering why we can't run forward. I guess we must love BMW, Mercedes, Bentley, Lexus, Nissan, Toyota, Kia, etc., etc. more than we want to get out of the Great Recession. And wait, Chinese cars aren't even here yet. Besides, China adds a 25% tariff on imported cars, while we take in all their products under Free Trade.
    14 Aug 2012, 02:35 PM Reply Like
  • Be wary of the autos!! With consumer sentiment falling, big ticket purchases will be put off until the elections are over, probably next Spring. In my opinion.
    14 Aug 2012, 03:18 PM Reply Like
  • It's really quite simple. I own F. As soon as I sell, it will go through the roof!
    14 Aug 2012, 03:50 PM Reply Like
  • Please sell, then, mehauck. I'm not sayin', I'm just sayin'.
    15 Aug 2012, 02:46 AM Reply Like
  • LOL, Some funny comments on this one!!
    14 Aug 2012, 04:04 PM Reply Like
  • I am hanging on my Ford stock too.
    14 Aug 2012, 05:19 PM Reply Like
  • i bought ford at 9.70 and i've gotten a dividend and made money on a couple of calls, so i'm close to break even. just hoping it doesn't really drop in the dumpster!

     

    how can i help ford's price? all i have to do is sell the $10 call. then it will zoom and i'll be thinking i wished i hadn't done that....
    14 Aug 2012, 05:56 PM Reply Like
  • Just sold my Friends at 9.66. Plan to buy it back at 9.05 (again)
    15 Aug 2012, 12:53 AM Reply Like
  • curious as to how you got 9.66. that's the highest the ask got today. the highest bid was 9.65. hmmm. doesn't seem likely.
    15 Aug 2012, 01:01 AM Reply Like
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