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Friday, July 19 | ||||
Sub-Prime Lending
(Metris -- MXT)
The sub-prime lending area is pretty interesting to look at when trying to gauge how the economy is doing. It's kind of like getting a peek into the state of the loan shark market. I saw that Metris's "charge-off" rate recently hit an all-time high of 15.81% ("charge-off" means that a creditor has written off the debt and will no longer pursue payment). That's a pretty startling number! The Office of the Comptroller of the Currency obviously has to keep an eye on banks that use FDIC-insured deposits to fund high-risk loans. By comparison losses at MBNA, Discover, American Express, etc. all average around 5-6%... no great worries there. Perhaps this is the tune they are humming to themselves at the OCC: Warren G: I'm gettin' jacked, I'm breakin' myself I can't believe they takin' Warren's wealth They took my rings, they took my Rolex I looked at the brotha, said "Damn, what's next?" Nate Dogg: They got my homey hemmed up and they all around Ain't none of them seeming if they going straight pound for pound They wanna come up real quick before they start to clown I best pull out my strap and lay them busters down Warren G: They got guns to my head, I think I'm goin' down I can't believe this happenin' in my own town If I had wings I could fly, let me contemplate I glanced in the cut and I see my homey Nate Nate Dogg: Sixteen in the clip and one in the hole Nate Dogg is about to make some bodies turn cold Now they droppin' and yellin', it's a tad bit late Nate Dogg and Warren G. had to regulate |
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