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Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: Paul Shread who wrote (66297)	2/13/2003 10:33:27 AM
From: reaper	Read Replies (6) \| Respond to of 209892

i know you guys don't care FA, but... important news out of Americredit last night (and yes, i am getting hosed on my long hedge there <ng>). they are in trouble. closing offices. most importantly, they are REDUCING loan originations by over half, from about $2 billion a quarter to $750mm a quarter. outside of real estate, the sub-prime customer is seeing his credit withdrawn. $4 billion of annual credit from Americredit no longer available. Capital One is net reducing its number of customers. NextCard is dead, and Metris is nearly so. Sprint PCS no longer providing pre-paid phones. MBNA and Citi are going super-prime. unless somebody steps into the breach here quick, the marginal consumer will be seeing his ability to borrow (and spend) curtailed substantially. this is not good. remember what happened to corporate America when the marginal corporations started having their access to liquidity withdrawn.... Cheers