Quote:
Originally Posted by squidward
you said
perhaps you were wrong.
They failed because their risk models required 4% growth YOY.
The consumer ran out of ability to service their debt, hence their inability to assume the new debt required for such growth. Couple this with mortgages starting to fail, as a direct result of the inability to roll over debt, and banking margin calls soon followed.
they were part of the whole picture, as was all consumer debt.
perhaps you need to refresh yourself on the geometric growth of debt servicing costs.
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You are either in over your head or playing games. Do you not realize that "derivatives" are "derived" from something else? I simply said that car loans are not what caused the banks to fail. Car finance companies charged enough interest that a 15% increase in repos (from your link) isn't going to put them out of business. You can talk about derivatives or whatever else you want but the fact is that car loans are not a big factor in the bank failures/bailouts. I specifically said that home mortages were. If you want to disagree then do so and say that home loans were not a much bigger factor than car loans. Either that or concede. No more BS please.