By John Lawrence
Wall Street needs to get people into debt. That’s one way they make their money – by collecting interest on people’s debts. They had a field day with subprime mortgages, and then those government bailouts were the sweet icing on the cake. Then they moved on to student loans.
Now they are making a killing off of subprime auto loans. Anyone can buy a used car, even those with no credit, the same way you used to be able to get a mortgage. They are also called liar loans which is the appropriate name for them because loan applications are falsified in the same way that mortgage loan applications were falsified.
It would seem that Janet Yellen, chair of the Federal Reserve, knows no other way of keeping the economy humming or even getting it moving than to shove zero-interest money at the big banks in the hopes that they will loan it out making a profit off the spread. [Read more…]