CloroxCowboy

Credit Default Swaps May Be Playing a Supporting Role in Chrysler Bankruptcy Filings

...? That was my point. Working on an assembly line is a WORKING class occupation. $100K/year does not fit the job being done.


On May 01 08:59 AM Liz wrote:

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> I'd hardly call $100K/year "working class".

Credit Default Swaps May Be Playing a Supporting Role in Chrysler Bankruptcy Filings

I'd have to agree that disregarding senior debt is dangerous at best. IMHO, it is absolutely the union that should suffer in this deal. UAW auto workers are over-paid for their skillset, plain and simple. That is a huge part of what's driven Chrysler, Ford, GM into the dirt. Of course the vehicle designs are lacking, but when exactly did it become status-quo for a working-class job to equate to a middle-class lifestyle? It's just not a sustainable business model.

Banks Not Lending Anymore? Simply Untrue

The real value of this article is the end where you state:

"It is certainly true that someone with a FICO score of 500 or 600 (sub-prime) might not get a loan in today’s environment..."

That's what the heads are talking about. Joe six-pack can't refi the expensive house that he wasn't really qualified to own when the bank approved his 50 year interest-only ARM loan in 2005.

There are only three possible outcomes to that scenario. The least likely possibility is that Joe is suddenly able to afford his crushing mountain of debt without modifying any loan terms...nearly impossible. Secondly, the government will eventually persuade, cajole or pass a law to force Joe's bank to either let him refi or modify his loan. Third outcome is that Joe goes into foreclosure and starts to learn some of the lessons about money that his grandparents probably learned in the '30s.

I find myself surprisingly torn between wishing for option 2 or 3...