robert.b.ferguson

Debunking Citron's Hit Job on World Acceptance Corp.

Some times it is difficult to understand what people are thinking. There has always been a market for subprime lending. People who have fallen on hard times or just never managed to get thier act together still want credit. These are high risk loans and naturally will have to pay for the risk incurred through higher interest and fees. Some people however think that these high risk borrowers should get a free ride. Why? Even the current administration seems to think this way. Cram downs in the mortgage market means that developers and builders will get burned so that a home owner dosn't loose thier house. Guess what there is no point in being a developer or buider when your property and labor can be confiscated. Same thing with corporate bonds especially in unionized shops. Who wants to buy them when uncle sugar can waltz in and give you back just pennies on the dollar and scrap over one hundred years of case law with the stroke of a pen. Now we are monatizing the 8% tax credit for first time home buyers as a means of issing no down loans to people who can't afford to buy a house. Sound familliar? Lets just plug the hole in the bubble with freshly printed dollars and reinflate that bubble! I'm with the author this stuff is incomprehensible and down right dishonest.