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alstry (36.19)

Distress Rising.....People begging for loans and so are dealers

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August 28, 2008 – Comments (6)

“‘We are seeing people that have challenged credit … (or) foreclosures pending’ said Bob Kleis, general manager of Jimmy Vasser Chevrolet-Toyota. ‘We are seeing more cars for sale in repossession wholesale auctions.’”

“‘The mess in the home industry has trickled down into the car industry,’ said Napa Nissan owner Vince Compagno.”

“At Napa Ford, Massie said, ‘We have customers that want to get vehicles but are in the process of losing a home.’ The number of buyers in distress ‘is much greater than this time a year ago.’”

“Why would someone in financial trouble buy a car? Even if people are moving or giving up on home ownership, he said, ‘They still need reliable transportation to get to work, school and church.’”

http://www.napavalleyregister.com/articles/2008/08/26/news/local/doc48b37f3431011733488283.txt

No wonder GM is cutting credit off from its dealers:

The credit crunch squeezing Detroit's Big Three auto makers is now spreading to some of their dealers, adding financial pressure to a group already strained by this year's big drop in auto sales.

The latest and most prominent example is Bill Heard Enterprises Inc., one of the largest Chevrolet dealers in the country, with 2007 sales of $2.1 billion. Earlier this month GMAC LLC, the financing company partly owned by General Motors Corp., stopped doing business with Bill Heard over concerns about financial losses related to the privately owned chain of 14 stores, Bill Heard confirmed through a spokesman.

http://online.wsj.com/article/SB121988557749578331.html?mod=todays_us_marketplace

Let's see how much money America can pour into its stock market as earnings evaporate and debt is destroyed.....can you imagine what retirement accounts and pensions are going to look like when value reflects earnings??????

 

On the IT spending side, if the States are shutting down the court systems and laying off workers to save money.....you think they are buying computers???

As America continues to default and shuts down.....expect the distress to keep  rising.

6 Comments – Post Your Own

#1) On August 28, 2008 at 5:39 PM, alstry (36.19) wrote:

How Much Distress are the Banks In????? 

 

Aug. 28 (Bloomberg) -- Lehman Brothers Holdings Inc., the investment bank that's trying to shed mortgage assets and raise capital, is poised to eliminate as many as 1,000 jobs, or about 4 percent of its workforce, in the fourth round of cuts at the firm this year, people familiar with the matter said.

4 Rounds of Job Cuts???????????????????

How many more rounds to go?????????

Citi telling its workers to cut back on color copying????

Now this...................

The Federal Deposit Insurance Corp. is preparing to sign a five-year lease to add five floors of space at its Dallas regional office as the agency prepares to increase scrutiny of failing and troubled U.S. banks.

The federal agency ... will add 125,000 square feet to the 185,000 square feet it rented last year ... That agency will add about 300 staff at the building, including some of the 69 retirees it is bringing back to help handle the increased workload, said spokesman Andrew Gray.

http://calculatedrisk.blogspot.com/2008/08/fdic-prepares-for-more-bank-failures.html

Hmmmmmmmmmmm.....5 year lease??????

If banks can't make money....how can they loan money....if banks can't loan money.....how can they make money......have we been here before????

 

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#2) On August 28, 2008 at 5:55 PM, LordZ wrote:

BLA BLA BLA :BAAAAAAAAAAAAAA BAAAAAAAAAAAA

never underestimate the power of the dark side

Remember that dark side, the one thru whom only one evil sith master managed to bring down the entire Jedi council and jedi members, the same dark lord that managed to turn the hero ANNIE into the beloved villanious Darth Vader.

Well that compares nothing to the evilness and ability of loan officers and bankers to borrow money on the cheap and loan it out at ever more expensive rates.

Pretty soon you'll see 1099 gangsters and 1099 thugs getting their money on these dead beat loan busters.

Banks can and will make that money money...

this i am sure of, and if by chance they need to go 100% fully underground the better.

Maybe some of these losers need someone to come get them and break all their toes with a hammer.

 

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#3) On August 28, 2008 at 6:19 PM, alstry (36.19) wrote:

HOW MANY BANKS WILL FAIL?????

FDIC hiring more workers.  Already talking about needing more money.  Leasing more space.

You think Russia and China are aware of our problems.  What if they start cutting off trade???

Also Thursday Putin announced economic measures which he said were unrelated to the fighting with Georgia. Nineteen U.S. poultry meat companies would be banned from exporting their products to Russia because they had failed health and safety tests, and 29 other companies had been warned to improve their standards or face the same ban, Putin said.

Putin said Russia's health and agricultural ministries had randomly tested the poultry products and found them to be full of antibiotics and arsenic.

While Putin repeated that the bans were not related to the Georgian conflict, they indicate the measures some Western countries -- particularly in Europe -- fear if Russia goes on a diplomatic offensive.

http://www.cnn.com/2008/WORLD/europe/08/28/russia.georgia.cold.war/index.html

How may banks are in trouble???????

Beverly Hills Bancorp (BHBC) said Thursday in a regulatory filing that Federal Home Loan Bank of San Francisco lowered its subsidiary bank's borrowing limit from 45% to 35% of the bank's total assets.

  Federal Home Loan Bank also decreased the Calabasas, Calif., bank's borrowing margin on various types of loans and securities pledged as collateral, and would make new advances only with maturities of one year or less.

  As a result of these changes, the bank had a shortfall of about $34.8 million in collateral underlying its outstanding advances, according to a filing with the Securities and Exchange Commission.

  Through its bank subsidiary, First Bank of Beverly Hills, the bank holding company conducts a banking business focused primarily on products tailored to commercial and multifamily real estate lending, in addition to investments in primarily mortgage-backed securities. The primary sources of funding for the bank are wholesale deposits and Federal Home Loan Bank advances.

Lordy,

I have no problem with optimism.....but when a Tsunami is coming......it really doesn't matter how long you can hold breath.....the question now is which way to the high ground?????

 

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#4) On August 28, 2008 at 6:47 PM, kdakota630 (29.76) wrote:

Actually, that's a good question.  In your opinion, which way is the higher ground?

Also, another opinion question... with so many people predicting the inevitable collapse of the dollar, does anyone have any idea on the time frame of when that collapse would be taking place?

I'm not looking for someone to say, "the collapse will take place at 3:13pm, Thursday, December 4th, 2008."  Something more along the lines of particular signs to watch for, or a simple "3-6 months from now" type of deal?

Anyone?  Anyone?  Bueller?  Bueller?

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#5) On August 28, 2008 at 7:00 PM, DemonDoug (52.08) wrote:

Good call on IT, Dell profit down 17%.  Blamed on.. get this... restructuring in Europe.

As far as I can tell, JPM and WFC and GS are safe.  Every other bank is on the sketchy list.  And 2 of those banks I just mentioned are fronts for the Fed.

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#6) On August 28, 2008 at 7:01 PM, LordZ wrote:

Alstry theres optimism and theres stupidity like people running out into the ocean collecting the flapping fishes all the while the more experienced people realize that seeing the ocean recede out into the vastness of the horizon is pretty bad. Regardless the world still functions, when the real world tsunami hit back several christmas's ago, many people died, however the world still continued, its survival of the fittest, you speak to this upcoming something  you constantly point to as if it was a bad thing ?

I can't wait for more banks to fail, for more businesses to go under, for more smug people to realize that they are soon to be screwed, i can't wait for housewives to get pimped by their husbands and or boyfriends, for what people have thought of true pain and misery has only been shadows and illusions of what real pain is.

Gentleman allow me to introduce myself.

I am true pain.

Hellraiser.

 

 

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