At car dealers across the United States, loans to subprime borrowers are surging - up 18% in 2012 YoY, to 6.6 million borrowers.It has gotten to to the point of ridiculousness. Subprime lenders are under so much pressure to loan out the money created by the Fed's quatitative easing, that lenders are taking shotguns as collateral on car loans!
And still, though Nelson's credit history was an unhappy one, local car dealer Maloy Chrysler Dodge Jeep had no problem arranging a $10,294 loan from Wall Street-backed subprime lender Exeter Finance Corp so Nelson and his wife could buy a charcoal gray 2007 Suzuki Grand Vitara.This is truly insane, especially when you consider that there is no such thing as a used Mossberg shotgun worth $700.
All the Nelsons had to do was cover the $1,000 down payment. For most of that amount, Maloy accepted Jeffrey's 12-gauge Mossberg & Sons shotgun, valued at about $700 online.
I have said it before and I will say it again. If you have money in a bank, get it out. Buy gold, buy silver, but buy something. Nothing good can come of this. We will hear the same old lie, "too big to fail", and they will use our tax dollars to bail the subprime lenders out, and they will add to the debt, and our currency will become worthless.