Autos?

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Aug 15, 2007 9:45 am

Mark Haines on CNBC just mentioned that there is talk in the street that auto dealers--like retailers--are encountering difficulty financing their inventory.


If car dealers cannot finance their inventory what does that mean for the auto manufacturers who need to deliver cars to dealers as they roll off the assembly line?


Not to worry--the market always goes up.  Hold the course, retirement is over rated anyway.

Aug 15, 2007 10:06 am

Depends on the dealer.  A lot of them do their floorplan financing through a local bank.  If the dealer takes on too many sketchy finance deals, their commercial loan officer has the right to protect the bank's interest and lower what they can borrow.


A fairly large number of dealers still finance through the factory, but since GM and others are having credit difficulties, and their lines are stretched, they have less credit to offer, making things tough for the dealer.........


It's happened before, in the 80's and 90's..........

Aug 15, 2007 10:35 am
bluestars80:

Depends on the dealer.  A lot of them do their floorplan financing through a local bank.  If the dealer takes on too many sketchy finance deals, their commercial loan officer has the right to protect the bank's interest and lower what they can borrow.


A fairly large number of dealers still finance through the factory, but since GM and others are having credit difficulties, and their lines are stretched, they have less credit to offer, making things tough for the dealer.........


It's happened before, in the 80's and 90's..........



Oh good, so all this talk of a credit crisis is not worth listening to.


Stay long, ride it out, the market only goes up, it's not possible for it to fall any farther than it already has, Auguest and September are historically.......oh wait, that's not true.

Aug 15, 2007 10:35 am

DAToo - you do know that the market does go up and down, right?  I don't think I've ever positioned a portfolio for the event that the market continues it's upward trend.  In fact, one of the big selling points of a good portfolio is how it performs when the market does go down.  I think it was Warren Buffett who said that a good bear market puts equities back in the hands of the people who know what to do with them.  Why don't you shut up with the "you know the market always goes up talk."  It only makes you sound like my 5 year old mouthing off to her mom.