Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Thomas M. who wrote (23287)	9/29/2000 9:35:06 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 436258

Yep, the Credit Bubble Bulletin was extra-tasty tonight. My favorite part concerned the sub-prime lending "boom": Considering the extraordinary environment, perhaps GMAC should be can be forgiven for boasting of its aggressive expansion into high-risk lending. After all, it has become the hottest ticket in town. Wall Street could simply not be more enamored with the consumer lending business and, importantly, the more risky the better. Telecom schmelecom, SUBPRIME is where it’s at!. Just take a look at the stocks. Year-to-date, Capital One has gained 45%, Providian 39%, Metris 66%, Household 52%, and Americredit 56%. With Wall Street cheerleading all the way, the rate at which some of these aggressive finance companies are lending is astounding. Capital One is expected to grow managed receivables by 28%, Providian 34%, and American Express 34%. Revenue is expected to grow 35% at Metris. Household International is also a favorite with its core managed loans expected to expand by 22% this quarter, led by an anticipated 40% growth rate for home equity lending and 55% for auto loans. One Wall Street industry research report stated that “customer and receivables growth remains robust, ranging from 20-40% annualized for the companies we cover.” Needless to say, he didn't consider the growth in subprime lending to be the most prudent use of capital at this stage of the cycle!!<G>