My Writings. My Thoughts.

March 2, 2015

// March 2nd, 2015 // Comments Off on March 2, 2015 // Daily News

Wells Fargo Puts a Ceiling on Subprime Auto Loans

Wells Fargo, one of the largest subprime car lenders, is pulling back from that roaring market, a move that is being felt throughout the broader auto industry.
The giant San Francisco bank, known for its stagecoach logo and its steady profits, has been at the center of the boom in making loans to people with tarnished credit scores. Wall Street, meanwhile, has been bundling and selling such loans as securities to investors, reaping big profits while allowing millions of financially troubled borrowers to buy cars.
But now, amid signs that the market is overheating, Wells Fargo has imposed a cap for the first time on the amount of loans it will extend to subprime borrowers.
The bank is limiting the dollar volume of its subprime auto originations to 10 percent of its overall auto loan originations, which last year totaled $29.9 billion, bank executives said.
The decision, detailed in interviews with top Wells Fargo executives, along with other large auto lenders, is a sobering moment for the booming market. Other lenders may decide to take their cue from Wells Fargo, one of the nation’s largest lenders. After successfully sidestepping many of the catastrophic mortgage losses that hit its competitors during the financial crisis, the bank has developed a reputation for deftly managing risk.
Over all, auto loans to subprime borrowers — typically people with credit scores at or below 640 — have more than doubled since the financial crisis, with one in four new auto loans going to subprime borrowers. In the second quarter of 2014, for example, total auto loan originations hovered at the highest level since before the financial crisis, according to the Federal Reserve Bank of New York. In that quarter, lenders originated $20.6 billion in subprime auto loans, nearly two times as much as in the same period of 2010.
Behind the surge are two major forces: Large banks, weathering a slowdown in other types of lending like mortgages, have increased their auto lending. And much as in the housing boom, investors in search of higher returns, like insurance companies and hedge funds, are buying billions of dollars of investments backed by subprime auto loans.
Such growth, though, has given rise to concerns, like those at Wells Fargo, that growing competition is fostering lax lending practices, including longer repayment periods and increased loan balances.

Today’s Inspiration

Testing the Motive of the Heart

by Joyce Meyer – posted March 02, 2015

After these events, God tested and proved Abraham and said to him, Abraham! And he said, Here I am. [God] said, Take now your son, your only son Isaac, whom you love, and go to the region of Moriah; and offer him there as a burnt offering upon one of the mountains of which I will tell you. So Abraham rose early in the morning, saddled his donkey, and took two of his young men with him and his son Isaac; and he split the wood for the burnt offering, and then began the trip to the place of which God had told him.
– Genesis 22:1-3

I believe God was testing Abraham’s priorities. Isaac had probably become very important to Abraham, so God tested Abraham to see if he would give up Isaac to Him in faith and obedience. When God saw Abraham’s willingness to obey, He provided a ram for Abraham to sacrifice in place of Isaac.

Remember, we all go through tests. As with Abraham, these tests are designed to try, prove, and develop our faith. One of the tests I had to face was, “What if I never have the ministry I’ve dreamed about for so long? What if I never get to minister to more than fifty people at a time? Can I still love God and be happy?”

What about you? If you don’t get whatever it is you want, can you still love God? Will you still serve Him all the days of your life? Or are you just trying to get something from Him? A fine line divides the motives of the heart between selfish and selfless; and we must always make sure we understand which side of the line we are standing on.

Saturday February 28, 2015

// February 20th, 2015 // Comments Off on Saturday February 28, 2015 // Daily News

Has Greece’s ‘Lehman moment’ finally arrived?

A key week for Greece’s economic future drew to a close on Friday with the country facing the very real threat that it’s running out of money and key analysts warming to the idea that it could be on its way out of the euro zone.
Euro zone finance ministers are set to meet Friday to discuss Greece’s latest proposals to extend its loan agreement. But with Germany already rejecting the plan, there is very little hope that an agreement will be announced. Another meeting in Brussels for next week was already being touted before Friday’s meeting even began. The main problem for the fiscally disciplined countries like Germany is that, despite the ground Greece has given up in the last week, it is still asking for the bailout loan without all of the strict austerity conditions that come with the money.
Greek economist Elena Panaritis, former member of the Greek Parliament and the World Bank, drew comparisons with the collapse of the Lehman Brothers in 2008. As with the fall of the big U.S. bank, market-watchers feel euro zone policymakers want to show the world they will only be pushed so far — with the result being Greece would be allowed to exit the euro zone.
Panaritis thought there was a “political statement as well as economic statement” being made during the negotiations. Randy Kroszner, a former U.S. Federal Reserve governor and the professor of economics at the University of Chicago Booth School of Business, agreed that there were comparisons between the two events.
“I think there a parallel, but the tools exist if the European Union wants to keep Greece in and if Greece is willing to stay in,” he told CNBC Friday. “Even though it may be quite ugly, the likelihood of complete chaos is much lower. So that gives policymakers more willingness to say ‘Hey, we’ll take that risk’.”

Today’s Inspiration

Your True Value

by Joyce Meyer – posted February 20, 2015

Now therefore, if you will obey My voice in truth and keep My covenant, then you shall be My own peculiar possession and treasure from among and above all peoples; for all the earth is Mine.
– Exodus 19:5

In Exodus 19:5, the Lord tells His people that they are His own “peculiar possession and treasure.” That word applies to us today as much as it did to the children of Israel. In John 3:18, Jesus told Nicodemus that no one who believes in Him will ever be condemned (rejected). You may not feel treasured, or even acceptable, but you are. In Ephesians 1:6 (KJV), Paul says that all of us who believe in Christ have been “accepted in the beloved.” That should give us a sense of personal value and worth.

I remember standing in a prayer line where I overheard a woman next to me telling the pastor who was ministering to her how much she hated and despised herself. The pastor became very firm with her and in a strong manner rebuked her, saying, “Who do you think you are? You have no right to hate yourself. God paid a high price for you and your freedom. He loved you so much that He sent His only Son to die for you, to suffer in your place. You have no right to hate or reject yourself. Your part is to receive what Jesus died to give you!”

The woman was shocked. I was shocked too, just listening. Yet sometimes it takes a strong word to get us to realize the trap that Satan has set for us. Do you lack appreciation for your own value and worth? Surely, you are valuable; otherwise your heavenly Father would not have paid such a heavy price for your redemption.

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