Well i hope someone will do something about slowing this crisis down. I heard/read yesterday that 30% of Prime rated borrowers are being turned down for car loans, vs 10% last year. The number for Sub Prime rated borrowers was a 90% rejection rate, vs just 30% last year, basically the sub prime market is gone. With all the automakers reporting sales down 35% and show room traffic down 45%, we can see these new financial realities hitting the society in many different ways and few if any are ‘good’.

I say let’s call these toxic securities(and i use the term securities loosely) as worth 35 cents on the dollar, for the purpose of “Mark to Market” accounting rule for a 6 to 12 month periods. This will bring borrowers into compliance with loan covenants thus slowing the crisis. In fact had this been the case last january, most of the crisis might not have happened.

This entry was posted on Thursday, October 2nd, 2008 at 11:06 am and is filed under Bad Business Practices, Economy, US Politics. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.