Auto Industries Subprime Problem

originally posted by: SkeptiSchism
I assume you mean individually, I also assume you mean it's not possible to do so collectively.

Yes to both.

originally posted by: SkeptiSchism
Here's the problem boiled down to basics. We have too many banks, too many lenders. They are enabled by the federal reserve. We don't need so many banks, let some fail, let the market work.

The number of commercial banks has declined by 20% since 2014 (and 30% since 2005). There are less of them.

a reply to: liejunkie01

Peoples desperation for transportation are why things like "take over payments" deals are so popular. The reality is that it's one of the worst possible deals one can make for a car, but when people can't get financing that's what they turn to.

Being poor is expensive, you have less money and everything costs more money.

originally posted by: AugustusMasonicus

originally posted by: SkeptiSchism
Here's the problem boiled down to basics. We have too many banks, too many lenders. They are enabled by the federal reserve. We don't need so many banks, let some fail, let the market work.

The number of commercial banks has declined by 20% since 2014 (and 30% since 2005). There are less of them.

I figured the numbers would be higher honestly, there was a lot of consolidation going on in the 90's and 00's too.

originally posted by: Aazadan

originally posted by: AugustusMasonicus

originally posted by: SkeptiSchism
Here's the problem boiled down to basics. We have too many banks, too many lenders. They are enabled by the federal reserve. We don't need so many banks, let some fail, let the market work.

The number of commercial banks has declined by 20% since 2014 (and 30% since 2005). There are less of them.

I figured the numbers would be higher honestly, there was a lot of consolidation going on in the 90's and 00's too.

There has been a ton of consolidation since the late 80s/90s. I forget which regulation was removed, but it used to be that commercial banks were regional entities. The regulation was lifted and it allowed them consolidate into national brands we know today.

I generally don't like a lot of regulations, but I do believe it was a mistake to repeal glass-stegall and the regulation above.

Banks should not be too big too fail. I think banking works best when served by the local community.

originally posted by: Aazadan
I figured the numbers would be higher honestly, there was a lot of consolidation going on in the 90's and 00's too.

I thought so too but that is still a significant number.