I mean it undoes the entire point of shopping around and selecting a particular lender. The first time this happened to me was when I had to chose a bank for my student loans and then I was notified 3 months later that the debt was sold. Since then I’ve come to realize that this is standard practice.

Before you leap to the defense of financial institutions think about this: companies that originated home loans (with very poor standards of verification) then sold those loans to other companies so they didn’t have to be the ones waiting to collect the debt were what sent the economy into its latest collapse.

Really, think how odd it would be if consumers could sell their obligations to someone else (for .50 on the ) and then after buying hundreds of obligations and living high on the hog that person could go bankrupt taking out hundreds of debts with him.

My most important concern though is there is no point in shopping around for and making a contract with a particular lender, since they can sell it at anytime. I’m interested in hearing your thoughts, if I had the power I would limit this ability.
Dear Sir Jam, you are factually incorrect. First, this question has nothing to do with delinquent accounts, this says a lot more about you and your issues. Second, debts are sold frequently, in fact almost all home loans are originated by one lender and then resold instantly to another (note paragraph two). Some people are unaware how often their debts are sold because sometimes their payments are handled by a debt servicing company, the one that sends you those little payment books, but they can work for a series of lenders with your one debt. I find it worth while to talk philosophically about our financial system because we have law makers who can change it if enough people ask.

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I know you are dying for those great Republican leaders to return to office, but hop on my magical carpet ride and let’s revisit the days of President George Walker Bush:

–Fraudulent, needless invasion of Iraq off cooked intelligence
–hijacking of the surplus Clinton left him
–Medicare reformed that fattened the pockets of Big Pharma (and drained our Treasury of billions)
–Silly idea about reforming Social Security (hilarious how the markets collapsed right after his tour)
–complete collapse of the global economy
–car companies going bankrupt
–insurance companies going bankrupt
–banks going bankrupt
–airlines going bankrupt
–torture
–military procedures ruled unconstitutional by Supreme Court
–unfunded occupation in Afghanistan (because he was too busy looking for those fairy tale nukes in Iraq)
–lied to America about the purpose of TARP (his 700 billion dollar bailout program)

Need I say more?

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The Detroit auto industry is facing bankruptcy if something doesn’t change soon. As a life-long businessman, I can tell you that adding cash cannot save a business unless it can be re-positioned to make money. Doing so just delays the collapse or becomes a regular handout.

Currently, the cost of labor per car for Honda and Toyota in their American plants is 00 to 00 lower than the Detroit (and UAW) labor cost. GM labor amounts to almost per man hour, and some worker have as much as 120 days of vacation per year. The book value of GM stock is now Negative (thats red ink, in the hole) 2 per share.
Ford is also negative; Chrysler is private but is said to be in similar shape.

Due to the terms of federal labor laws. once the union has an agreement, they can shut down a company that won’t offer them what they want. This literally keeps the business from doing business, blocking deliveries and alternate choices while overhead costs eat them alive. That tactic would be illegal if done under any other conditions except a labor strike, and that ability is how the unions have forced automakers into the agreements that created this competitive handicap. Under the current conditions, Detroit will never be able to be profitable, but continued bailouts could keep them running and thus keep union paychecks coming. At your expense, of course.

In the alternative, if the companies declare bankruptcy the union agreements will be voided. New competitive conditions would be negotiated, and the companies could be re-organized in a competitive and profitable form.

Your politicians are discussing bailouts, but none of them are willing to discuss changing the labor laws to prevent the use of extortion tactics. The unions control a huge vote base and a lot of contribution dollars, and it is dangerous to offend them, so- they just don’t go there.

IF we don’t position the auto industry where profitability is possible, aren’t we just bailing out the UAW?

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