PWCC expands its lending activities

[Casey2296]

Two words: Leverage and betting on the come.

It's a nice lending model and very profitable, the risk is all on you and the asset. When the chips are down they don't even have to come after you, they just lock down your asset which they already have in their possession. I'm in lending and I would love to read the fine print on this program and would probably participate in it as a lender.

You have a collection of cards that are valued at today's value but if your precious 48 Jackie drops in value I'm keeping your card and you owe me money and I'll come get it.

Same model as mortgage backed securities in 2008, or putting 20k in card purchases on you credit card and not doing the math. My vote is no if you want to sleep at night.

[raulus]

Originally Posted by Casey2296

Two words: Leverage and betting on the come.
.

Makes me wonder how much in these loans is outstanding.

Certainly if there’s a lot out there, then that just further raises the odds that a significant downturn leads to forced liquidations and a downward spiral.

[Casey2296]

Originally Posted by raulus

Makes me wonder how much in these loans is outstanding.

Certainly if there’s a lot out there, then that just further raises the odds that a significant downturn leads to forced liquidations and a downward spiral.

It's a fools errand.

[raulus]

Originally Posted by Casey2296

It's a fools errand.

“Leverage upon leverage upon leverage. What could possibly go wrong?”

- every banker in the country in 2007