SageBrush wrote:I showed that video to my wife. We both wondered why banks would give a student a $50k loan for a car.
I can only imagine the lenders were swayed by his job prospects (in nursing ?) after he graduates, but it still means that the country is full steam ahead into easy credit. How short our memories are.
If I were king all consumer lending would be non recourse. Isn't CA already leading the way there? (was the guy in the video from CA?)
In other news, the jokers in congress have just agreed to repeal some of the post 2008 banking regulation that was interfering with bankers ability to extend (easier) credit.
The video guy should have waited a few months, then he could have financed the car and taken out another $50k cash for incidentals.
To your question, since the last massive credit bubble was fueled by the opaque derivatives market and the congressional idiots are setting us up for more of the same, I sincerely doubt non recourse loans will plug the dike.