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August 11, 2012 at 10:17 PM in reply to: dang those overpaid underworked wastrel firefighters again.. #750076August 11, 2012 at 11:11 AM in reply to: OT: California Secure Choice Retirement Savings Program #750066
paramount
ParticipantNone of this really matters as long as the dollar is the world’s reserve currency.
We can and have been printing our way out of any fiscal difficulties.
The stock market is in a strong rally.
All of these proposals would be a big problem for most other countries, but not the US.
ParticipantLast 2 minutes:
August 6, 2012 at 9:27 PM in reply to: DEBT BOMB – The Global Financial Crisis Stripped Bare (somewhat OT) #749592ParticipantWait a second, it’s all good now.
We got 163,000 seasonal jobs for July – and market is in the midst of an awesome rally!
Were going to Dow 15k by years end!!
Participant[quote=spdrun]Is SoCal really that different from the Northeast, where my family and I have both had good luck with tenants? Some messy people, but no non-payers.[/quote]
It’s hard to generalize, but I suspect yes – although it may depend on what part of the northeast you’re talking about.
I don’t want to be overly dramatic, but when you couple the extreme materialism with very limited economic opportunity of SoCal you get interesting results.
The population of SoCal is probably 24 million or so, and it can be very tough to make it in SoCal because of that fact; but at the same time there is considerable conspicuous and concentrated wealth.
Yes, materialism is everywhere as is entitlement, but I think it may be more pronounced in SoCal than in most other areas.
To much California Dreamin going on, migrants to California were sold on a marketing gimmick.
ParticipantRemember that we live in an entitlement society – particularly in so cal.
Many (if not a solid majority) feel they are entitled to own their house – part of this attitude comes from brainwashing of course (the American dream blah blah), and also a cultural resentment against those who own.
What does all of this mean? Most tenants do not want to pay you rent.
ParticipantI find Honda dealers to be very proud of their honda’s – and I would avoid dch Honda in Temecula.
ParticipantI would think a V6 Accord or Camry would be pretty exciting to drive.
Not a 335, but still a nice ride.
When asked I always suggest that car buyers who live in the west go for the larger engine.
Lot’s of mountains and non turbo/super charged engines can lose significant power @ higher altitudes.
Almost can’t have to much power in the mountain west.
Participant[quote=squat250]im only afraid if I don’t buy a new car I’ll have an accident and get hurt.
I promise not to regret holding on for any other reason.[/quote]
You hit the nail right right on the head. Holding on to an old old car could be a false economy.
All it takes is one accident, and a new car will very very likely improve your chances of avoiding injury or worse. Or even avoiding an accident altogether.
It’s insurance. Cars are safer today than they were, maybe even just 5 years ago, not to mention 10 or more years.
You can and will get more money.
You can’t replace…well, you know where this is going I’m sure.
I got rid of a perfectly good minivan because I didn’t like my son having to sit in the 3rd row (essentially no crush zone).
If anything you should be scared of not having a modern safe car given the way people drive in so cal.
ParticipantThis type scenario is becoming more and more common.
Based on my experience, I would try to sell the property 1st.
And trust me on this, a property management company can cause more headaches than just renting it out and managing the property yourself – not to mention the tenants (a property manage does not always insulate you from tenant headaches).
There are many many unscrupulous property management companies out there…do your homework.
Also, even properties in prime areas can sit vacant longer than you might think.
August 2, 2012 at 11:37 PM in reply to: UC Police Officer pepper spraying Occupy Protesters acted reasonably. #749425ParticipantI’m not surprised, and as I’ve stated in the past expect more and more aggression from the gov’t towards the general public as the economy restructures.
ParticipantI’ve noticed that as well – hard sales – following the eye exam @ local optometrists.
I just go to Costco or Wal Mart these days.
ParticipantGM Ramps Up Risky Subprime Auto Loans To Drive Sales
President Obama has touted General Motors (GM) as a successful example of his administration’s policies. Yet GM’s recovery is built, at least in part, on the increasing use of subprime loans.
The Obama administration in 2009 bailed out GM to the tune of $50 billion as it went into a managed bankruptcy.
Near the end of 2010, GM acquired a new captive lending arm, subprime specialist AmeriCredit. Renamed GM Financial, it has played a significant role in GM’s growth .
The automaker is relying increasingly on subprime loans, 10-Q financial reports shows.
Potential borrowers of car loans are rated on FICO scores that range from 300 to 850. Anything under 660 is generally deemed subprime.
Subprime Key Driver
GM Financial auto loans to customers with FICO scores below 660 rose from 87% of total loans in Q4 2010 to 93% in Q1 2012.
The worse the FICO score, the bigger the increase. From Q4 2010 to Q1 2012, GM Financial loans to customers with the worst FICO scores — below 540 — shot up 79% to more than $2.3 billion. The second worst category, 540-599, rose 28% from about $3.4 billion to $4.3 billion.
Prime loans, those above 660, dropped 42% to $676 million.
GM Financial provides just over 8% of GM’s financing. Prior to 2006, GM’s captive lending arm was GMAC, but GM sold a controlling stake in 2006. GMAC later renamed itself Ally Financial and continues to provide the bulk of GM’s financing.
At the peak of the credit crisis and recession in late 2008, Ally announced that it would move away from subprime lending.
By spring 2010 GM’s new management, led by North American executive Mark Reuss, wanted to move back into subprime, fearing that GM couldn’t compete.
Subprime lending in cars is not as risky as in housing. Car loans are cheaper, so customers have an easier time making payments. When they do go into default, the cars can be repossessed and sold to recover some of the loss.
“The subprime market grew as a result of the recession,” said GM spokesman Jim Cain. “Our experience, however, is that with proper management they are very good risks.”
He points to GM’s credit losses which have not risen above 5.5% since late 2010.
Nevertheless, since it acquired GM Financial, GM has seen its subprime loans grow from about 4.8% of sales in Q4 2010 to 8.2% in Q1 2012. The industry average is about 6%.
“Is GM taking on more risk than is safe given our uncertain economy?” asks Edward Niedermeyer, TheTruthAboutCars.com editor-at-large. “They may be trying to goose short-term sales with subprime lending to boost its stock price, which is tied to the government getting out of its GM investment.”
GM still owes about $26.4 billion in direct aid to the federal government. The Treasury owns 26.5% of the automaker, or 500 million shares. The stock price would need to be 53 to recoup those taxpayer costs.
GM shares closed Friday at 19.67 after hitting a post-IPO low on Wednesday.
Subprime ‘Double Standard’
When pushing the Dodd-Frank financial overhaul, Obama told Americans, “you have a stake in it if you’ve ever tried to take out a home loan, a car loan, or a student loan, and been targeted by the predatory practices of unscrupulous lenders.”
While the administration has targeted subprime mortgage lending, it seems to have turned a blind eye to auto subprime loans.
“The Obama administration has seen to it that the Consumer Financial Protection Bureau is important in the subprime mortgage arena,” said Niedermeyer. “But it has exempted auto-finance from that. I definitely think it is a double standard.”
He also wonders if the Treasury will be able to recoup its GM aid: “The conventional wisdom has been that consumers have too much debt and need to de-leverage. Having that weak underlying foundation makes this rise into subprime lending by GM more worrisome.”
Participant[quote=bearishgurl]Toy pickups and 4-runners can easily last 300+k miles as do Lexuses (if properly maintained). The Lexus Luxury Sedan (model years ’89 to ’00) was built to last ~500K miles.
http://en.wikipedia.org/wiki/Lexus_LS%5B/quote%5D
I looked hard at 4-Runners before buying a CX-9.
I used to tell anyone who would listen that Crossover’s (CUV) weren’t good at either being a SUV or a car. Don’t buy one.
But then I drove one – a Traverse in particular. I was really, really impressed by the overall ride and driving experience.
For the vast majority of drivers, a CUV is a far superior choice (IMO) when compared to an old BOF SUV.
They are easier and more comfortable to drive and have a much better ride.
I doubt I would ever buy an old school BOF SUV ever again, even the legendary 4-Runner is outclassed in almost every meaningful way (for most buyers) by even an average CUV.
ParticipantI just bought a new CX-9, and I always buy used cars.
The price differential between certified and new was to close (by design I’m sure) to buy used.
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