Most of us here are not of the 'wealthy' set. Our lives will not change much.

[DainBramaged]

The FED played an end game and released a total of $620 Billion to the banks so as soon as that reality hits, the panic will cease. What our Representatives need to focus on is whether or not we need an additional $700 billion 'bail out', or was this a ponzi scheme on Booshe's part from the beginning (I think he never had any intention of waiting).

We've been scammed, life will go on as usual. And tomorrow the sun will shine all over the world.

Peace out.

[jobycom]

1. Your UAW sticker, unless it's fake, says otherwise.

You don't think a shortage of car loans will affect your life?

[avaistheone1]

5. Another bank will step in for those who are not willing to make loans.

[jobycom]

14. You've missed the whole point of what's happening here if that's what you think.

Lenders have to borrow the money they loan you, except credit unions and S&Ls. That credit is drying up. In addition, the money they do have will be loaned more cautiously and with as little risk as possible. All banks, all lenders, on all types of loans, will be affected. Sure, there are still loans. But you cut the loans by 20%, you cut car sales by 20%, and guess what will happen to jobs?

[avaistheone1]

23. Gee since when have contractions in employment been an emergency.

The jobs have been flowing out of this country for the last eight years this is nothing new.

I hate to see anyone lose their job. But, I don't think this is the solution. There have been many other alternate solutions which have been offered to keep credit flowing without settling for this crappy plan. Bailout in haste, repent at leisure.

[MsRedacted]

26. That's naive. Right now there is a credit tightening that will continue to get worse.

And it will hit people very hard.

RIght now it's very very very difficult if not impossible to get a home loan. It going to be very very very very difficult to get a car loan eventually. I have a friend who is being forced to quit graduate school because can't get the loans she needs. (She's not a kid with no credit, she's 38).

And eventually it just snowballs. No credit =less purchasing power for business and consumers purchases, no purchases = layoffs. Laid off people who weren't in sub prime mortgages run out of $$ and they can't pay their mortgages. More foreclosures. Housing values continue to fall. More foreclosures = more bad bank debt. And that cycle repeats itself until a modern day FDR shows up.

[pnwmom]

6. And not just car loans. The auto manufacturers borrow money to pay expenses

until they can sell the cars (which are then bought mostly with loans).

Functioning credit lines are needed at every step of the way.

[DainBramaged]

10. You are all feeding on panic. There is plenty of money available

I know for a fact. NONE of the auto finance arms are lacking money, and the banks that have survived are placing loans, they are just being more stringent in their requirements. GMAC, Chrysler, have and soon Ford will give up leasing the least profitable device they use.

I cannot be worried about this. Life is too short. I have survived two brain tumors, tomorrow I get a brain scan looking for more. If I roll snake eyes, the market isn't going to mean shit to a tree to me.

[jobycom]

16. Well, I hope your scan goes well.

You'll forgive me for still giving a shit about my kids' futures, though, I hope.

And sure there is still money to loan. Just a hell of a lot less, and if things get worse, even more less. My spouse is high up in a bank, so I'm not guessing. They are one of the good ones, and they can't make enough loans. And that means that there are a lot of loans--good credit loans--that won't be made. And that's a lot of cars not sold, and a lot of families who will have no tree this Christmas.

[Fleshdancer]

21. article: Hit To Consumers As Big 3 Auto Lenders Lend Less To Dealers

http://money.cnn.com/news/newsfeeds/articles/djf500/200809291631DOWJONESDJONLINE000660_FORTUNE5.htm

NEW YORK -(Dow Jones)- The finance arms of Detroit's Big Three auto makers are selectively tightening credit to many financially strapped dealers, making it harder for consumers to get loans, particularly for new cars.

The credit squeeze is likely to ram down the brakes on already tepid new auto sales because auto dealers use a large chunk of this funding to stockpile new cars. At the same time, it also offers an opportunity for Chrysler Financial, GMAC LLC and Ford Motor Credit to whittle down their bloated retail networks as they struggle to shore up capital.

"Given the credit crunch and problems of funding, these lenders will turn up the heat on dealerships," says Jerry Breen, a senior director at ABSNet. ABSNet is a data provider for structured securities, including those made up of loans by auto finance companies to their dealers.

"The harder it is for dealerships to get funding, the harder it will be for the consumer to get a loan for a car," said Breen. "This will only exacerbate a bad market for new car sales."

[DainBramaged]

24. Bill Heard Enterprises Inc was facing Federal prosecution

for scamming customers, and HE went Chapter 11, has reopened about 6 of his stores under 'new' names, or sold some of the properties, to escape the Booshe justice department, and he will probably get away Scott free after stealing millions from innocent customer.

THAT is the fact of the story.

Mr. Big Volume reaches the end of the line

Heard's retail sales averaged 2,913 units per dealership, more than five times the volume of the average Chevy store. But those sales volumes were generated via a mix of hard-sell tactics that got Heard into deep legal trouble with regulators in several states.

In November 2007, General Motors threatened to yank Heard's franchise at a Georgia store over a fake recall notice mailed to 10,000 consumers. That fake recall triggered lawsuits that could result in civil penalties of $50 million or more.

Months before Bill Heard closed all his stores, cracks were beginning to show in his empire.
June: Bill Heard Chevrolet in Scottsdale, Ariz., agrees to a $225,000 settlement with the Arizona attorney general. The store allegedly engaged in deceptive advertising and sales practices.
July: Heard tells the Ledger-Enquirer of Columbus, Ga., that he is looking to sell "two or three" of his dealerships because of slow sales. Heard also puts his
$17 million lakefront home on the market.
Aug. 21: GMAC halts floorplanning line of credit for all Heard dealerships it finances. Heard breaks off negotiations with the Georgia Governor's Office of Consumer Affairs regarding a lawsuit seeking $50 million in civil penalties over deceptive advertisements.
Aug. 22: Office of Consumer Affairs amends its lawsuit, seeking higher penalties.
Sept. 12: Heard closes Scottsdale dealership 2 years after moving it into a new
$12 million store.
Mid-September: GMAC, Heard try to negotiate a new floorplan. The talks fail.
Sept. 24: Heard closes all 13 remaining dealerships in Alabama, Florida, Georgia, Nevada, Tennessee and Texas.
Source: Automotive News
Exactly what prompted the group's demise is unclear, but three problems played a major role:

1. GMAC yanked his floorplanning, and Heard could not finance his inventories.

2. Slumping Chevy truck sales hurt the group.

3. State regulators threatened to impose huge fines for deceptive sales practices.

These three factors caused a rapid-fire sequence of events this summer that doomed Heard's empire.

On Aug. 21, GMAC yanked Heard's floorplan line of credit over what a Heard spokesman called a "financial matter."

On Sept. 12, Heard closed his store in Scottsdale, Ariz. Two years earlier, that dealership had moved into a new $12 million store.

And just a week before he closed his remaining stores, Heard tried to negotiate a deal with GMAC to restore his floorplan. The deal fell through, said a source familiar with the situation.

Two other lenders provided floorplanning, but at least one of those yanked its financing, too, the source said. After losing the GMAC financing, Heard tried to sell his stores, said another knowledgeable source. But his financial situation was too dire, the source said. It was too late.

http://www.autonews.com/article/20080929/ANA06/809290346

[napi21]

2. I hope you're right & I'm wrong, because if I'm right, you need to

be concerned about keeping your job! If you don't think a job loss will change your life, you really need to focus more!

[patrice]

3. ?? How old are you? I'm not wealthy. That's why I NEED that $10K I just lost out of my IRAs.

I need some expectation that the market will come back at least part way, not totally destroyed by our inability to do the right thing.

[mikelewis]

13. You would have lost it anyway...

If the Congress had elected to print up $700 billion new dollars, the inflation created would have lowered you IRA just as substantially. Of course the fall wouldn't have been as precipitous but within a few months or possibly one year, that $10k would be adjusted out of your portfolio in the decreased value of your dollars. Indeed, that decline coupled with a decline in your paycheck would be a killer... imagine if you made $1000 a week... if this deal goes through, in about a month your $1000 would only be worth $900 or maybe even less depending on how the foreign markets respond to the bailout. In one year, your pay would be cut by almost $5000 and your portfolio would have still lost the $10k and probably then some if you had about $50k in assets.

[pnwmom]

4. Do you work for an employer that uses credit lines?

Credit is drying up. Your job is at risk. So is your health care, so are your supermarkets.

All businesses borrow money and pay it back, routinely. Without banks being willing to credit each other, life will NOT "go on as usual."

[OmahaBlueDog]

7. DainBramaged, can't we get Ford to sell that 65mpg diesel Focus here?

That's what I think of when I hear bail out. I drive 25,000 per year for work; 65 MPG would bail me out.

[DainBramaged]

12. NO ONE read what I wrote, no one, just what they wanted to read

The FED just released $620 BILLION in funds without the approval of Congress. So you can all calm down now.

[OmahaBlueDog]

17. I apologize. I coundn't resist, since you are the American car guy

..and I did read what you wrote, which has alternatively been characterized as "an end run" around congress, or the only choice left.

One would hope that it solves the short term liquidity problems, but I'm still left to wonder if we could not wait until after the GE.

[DainBramaged]

19. I think this entire 'crisis' was manufactured by the Booshe cabal

so they could take as much as they could before the end of their world as they know it.


(We're coming out with a 42+ MPG highway Non-hybrid next year).:evilgrin:

[Zynx]

8. Yeah, Recessions turn out just great for the poor.

[kestrel91316]

9. As long as the wealthy crowd across the street from my office

has cats and two nickels to rub together, they'll bring them in. Many will switch to me because my fees are mid-range, and in hard times even the wealthy will think twice about going to the most expensive places in town just for the status.

The poor don't patronize me because I am mid-range. The middle class does, and they know that if they are struggling and kitty needs care, we will work something out. I can always accept barter. Maybe I will tell folks they can pay me in fresh fruits and vegetables from their home gardens. Or jewelry. Or canned goods and staple items from the grocery. Or labor.

When Bush I wrecked the economy, it was tough, but when people can't afford gas for the car they stay home and notice that Fluffy's sick. Same thing if they have been laid off. It all evens out in the end. When times are good, nobody's home enough to notice the cat, or they just don't have time to bring it in.

I have to remain optimistic about my ability to support myself, however meagerly. The alternative is unthinkable.

NGU.

[donco6]

11. While the sun may shine,

your paycheck may not see the light of day.

Most corporations of any size invest their cash in liquid investment trusts. These trusts set up laddered investments that come due in increments so that a certain amount of cash is always available to members, and they can maximize the interest for the members.

Unfortunately, when a firm such as Lehman or Merrill Lynch goes belly-up, those liquid investments suddenly become frozen. There isn't enough cash on hand to distribute to trust members to make their payroll. The cash may or may not show up at some point, but you will suffer from no pay or reduced pay until that time.

Good night and sleep well!

[Carolina]

15. excellent point

sadly too many people don't see the obvious: wealth never trickles down but debt surely does. What has happened on Wall Street has a ripple effect that hurts us all.

[lonestarnot]

22. He/she will and you will make it.

[Swede]

18. Many businesses make payroll on a line of credit.

What happens when payday checks start bouncing?

[DainBramaged]

20. HERE

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3518671

I ain't lyin. They did what they were going to do with or without the approval of Congress.


Go to sleep, vote for Obama in 34 days.

[Waiting For Everyman]

25. Yup, there's the 'liquidity'. Good thing they didn't get it twice.

[MsRedacted]

27. Naive again. Those are short term loans that have to be paid back. The Fed Res is a private entitly.

That's a band aid that might last a little while.

You see the Federal Reserve isn't the government. It's a private bank that controls our currency. And it's stretched so far after this infusion, it might just burst.

So unless we all go out and buy a foreclosed house with cash tomorrow, not gonna help much.

[DainBramaged]

28. (sigh) like I said before, MY life is too short, wring your hands, shred your clothes

bang your head against the wall. WE have NO control over ANY of this.

Goodnight and goodbye, expert.