Forum Discussion
mlts22
Aug 25, 2013Explorer
I am not passing judgement nor meaning this as a criticism of people here. Stuff happens.
However, one reason why banks are keeping their money overseas (and making sweetheart deals to Chinese companies) while refusing to loan to US businesses (thus keeping the economy stagnant) is because of the trend for people this side of the pond to buy something, find they don't like it, owing more than it is worth, then just shrug, stop paying on it, let the bank repo it, and taking the dent in the credit record. The bank can get a deficiency judgement, but usually they just write it off and dent someone's credit.
Banks have gotten wise to this. I have decent credit, so they offered me 100% financing (I refused to do this, as I wanted to always be ahead of the game, especially because I financed a fairly expensive generator in the purchase), but a number of banks will only finance on the used value of the rig, so all depreciation costs have to be fronted in advance.
However, one reason why banks are keeping their money overseas (and making sweetheart deals to Chinese companies) while refusing to loan to US businesses (thus keeping the economy stagnant) is because of the trend for people this side of the pond to buy something, find they don't like it, owing more than it is worth, then just shrug, stop paying on it, let the bank repo it, and taking the dent in the credit record. The bank can get a deficiency judgement, but usually they just write it off and dent someone's credit.
Banks have gotten wise to this. I have decent credit, so they offered me 100% financing (I refused to do this, as I wanted to always be ahead of the game, especially because I financed a fairly expensive generator in the purchase), but a number of banks will only finance on the used value of the rig, so all depreciation costs have to be fronted in advance.
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