Monday, July 13, 2009

Whitney Tilson: Why There Is More Pain To Come

Whitney Tilson: Why There Is More Pain To Come

According to one of the statistics in this presentation, 29% of all new car sales in California in 2007 were financed using Home Equity Lines of Credit. The same figure was about 20% in Florida in 2007. So, with these artificially-boosted car sales, how did the car companies still manage to go bankrupt? And how could they possibly keep up the same rate of sales during the housing crash, when HELOCs are no longer so easily obtained?