Subprime Devastation and the S&L Crisis
Interesting graphic from Bloomberg, comparing the present Subprime debacle versus the S&L crisis.
The $700 billion bailout of Wall Street's subprime-tainted securities harkens back to the real- estate bets that sparked the savings and loan crisis in the 1980s. The geography's the same, too.
Then, as now, the government created a taxpayer-funded enterprise to absorb the fallout from bad real-estate investments. A Bloomberg map of the hardest-hit areas shows that, with the exception of Nevada, regions with the highest foreclosure rates also had the most savings-and-loan failures, according to the Federal Deposit Insurance Corp.
The overlap shows that the aggressive lending and speculation that ignited the savings-and-loan meltdown persisted, at least in those areas, according to Paul E. Johnson, who was mayor of Phoenix from 1990 to 1994.
Subprime Devastation Retraces Path of S&L Crisis in U.S. States
Jonathan Keehner and Bob Ivry
Bloomberg, Oct. 8 2008
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I know this is off topic but since you have shown an interest in BMWs, I thought I'd bring this piece of good news to your attention.
The BMW Group is about to become the first manufacturer of premium automobiles to deploy a fleet of nearly 500 all electric vehicles for private use in daily traffic. Powered by a 150 kW (204 hp) electric motor and fed by a high-performance rechargeable lithium-ion battery, the vehicle will be nearly silent and emissions free.
The Mini E will have a range of about 150 miles and will initially be offered to select private and corporate customers in California, New York and New Jersey, but will first be given its world premiere at the Los Angeles Auto Show on November 19th and 20th, 2008.
As for its speed, BMW claims that it will offer acceleration to 62 mph in 8.5 seconds with a top speed that is electronically limited to 95 mph.
A lot of money is going to made off this car. It has brand and it's green. This is the next volky bug. Everyone will want one.
BR: On Thursday, I went to the Susan G. Komen Drive for the Cure event. (worthy of a standalone post) I was disappointed in the M3 -- lots of power, but much heavier and not as nimble as the old car.
I came away from the drive with a newfound appreciation for the 650; I drove the paddle shifter model, but the 6 speed that would really sing.
The upside of deflation (also worthy of its own post) is that one of these may find its way to my driveway if auto prices continue to freefall.
Posted by: AGG | Oct 18, 2008 3:57:36 PM
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