I recently took a friend to buy a car. Went into the ghetto car dealer’s office to find out about financing a loan for the car, they ran her credit and it came back approved by some ghetto bank that wanted to charge a financing fee. The sales manager told us he would find a better loan and he picked up the phone; he explained the situation, listened, and hung up. He turned to my friend and said that Frank would carry the loan if she paid sticker price. We left.
A few hours later over at Wells Fargo she was turned down with above average credit for a loan of three thousand dollars. The loan officer seemed very surprised; he thought it was no big deal. I’m scared, I had no idea the loanable funds market was so contracted that above average credit micro loans were considered subprime. Is Wells Fargo next?