Yes, m4l, that’s why the returns on the deposit side are so high. They are essentially loan sharks that operate within the Chinese community and get their deposits from the community as well. As far as I know, the payback rates on the loans are very high.
“From what I’ve read, it sounds like they are in trouble with that gamble. What would have been the result if the overwhelming majority of them had agreed to take stock?”
I works with a 12 foot I-beam, a jar of lube and a mouth dam to bite on. You figure the rest….
DIBS, not familiar with the return on deposit side of these associations but have heard they charge loan shark rates (ie 20% or more) on the loan origination side.
Chapter 11 puts a freeze on any creditor claims but it’s only a temporary solution. There’s no way that GM can trade its way back to profitability.
If you interested in a speculative bet, GM bonds are currently trading 8.5 cents on the dollar. I reckon they should be worth closer to 30 cents so there could be some big upside once the dust settles.
The main question is whether the US government will trample on bondholder rights. If they do (which I don’t think they will but never say never) then it’s game over for the dollar.
Thanks Rob!
Yes, m4l, that’s why the returns on the deposit side are so high. They are essentially loan sharks that operate within the Chinese community and get their deposits from the community as well. As far as I know, the payback rates on the loans are very high.
very late to the party, but congrats snapz im so happy for you! 🙂
*rob*
“The main question is whether the US government will trample on bondholder rights.”
How so, Chicken?
“From what I’ve read, it sounds like they are in trouble with that gamble. What would have been the result if the overwhelming majority of them had agreed to take stock?”
I works with a 12 foot I-beam, a jar of lube and a mouth dam to bite on. You figure the rest….
The What (Paging Adam Dahill)
Someday this war is gonna end..
Thanks DH 🙂
DIBS, not familiar with the return on deposit side of these associations but have heard they charge loan shark rates (ie 20% or more) on the loan origination side.
What Chinese Associations are you speaking of?
Chapter 11 puts a freeze on any creditor claims but it’s only a temporary solution. There’s no way that GM can trade its way back to profitability.
If you interested in a speculative bet, GM bonds are currently trading 8.5 cents on the dollar. I reckon they should be worth closer to 30 cents so there could be some big upside once the dust settles.
The main question is whether the US government will trample on bondholder rights. If they do (which I don’t think they will but never say never) then it’s game over for the dollar.