Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Old 04-22-2008, 01:01 PM   #41
Recycles dryer sheets
Abreutime's Avatar
Join Date: Jan 2008
Posts: 325
Originally Posted by ladelfina View Post
"turning people away at the door":
I have the impression pretty much every financial institution is hurting badly for cash. Less cash = fewer loans.. and fewer loans would seem to translate into less income. You're right, laurencewill --some of that is missed opportunities -- but I don't think they have a choice. Banks are paying OUT 8%, 10%, 12% themselves just to stay "solvent". It's just the reversing out of the past irrational lending and it's unclear how long it will take and how badly it will seize everything up [cue tinfoil accusations now].

It's not that I love or care about E*Trade.. but I can't see how anyone can get angry over losing credit based on a depreciating asset, either. The keg is empty and the party is winding down.
This post is pretty correct. Many financial firms that are highly leveraged (ie. they borrow huge sums of money, and then lend it out to their customers) are de-leveraging due to the more restrictive borrowing environment. They likely need to restrict some of their outstanding obligations, and HELOC business isn't their core business. E-Trade was having trouble with financing earlier in the year and there was a non-trivial risk of blowing up, so they probably have little choice but to reduce some of their secondary businesses.

While you may not be a risky borrower, you probably aren't very profitable.
Abreutime is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Etrade safe? accountingsucks FIRE and Money 4 04-19-2008 11:17 AM
Etrade Anyone? tgotch FIRE and Money 19 11-14-2007 04:58 AM
Goodbye Boy Calgary_Girl Other topics 21 03-02-2007 10:09 AM
Goodbye, Sophie Rich_by_the_Bay Other topics 52 01-08-2007 07:00 PM
This isn't goodbye laurence Other topics 21 09-13-2006 08:06 AM

» Quick Links

All times are GMT -6. The time now is 03:33 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2023, vBulletin Solutions, Inc.