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Aug 13th, 2007 by Scott Murphy

The Fed infused a bunch of money into the world markets on Friday.  Money is getting tight and if you are credit deficient hopefully you have a car that will last awhile.  A professor at Penn State has released a study that finds “the probability that borrowers will default on their auto loans is affected by the type of car that is financed. Loans secured for European cars and Japanese cars are 50 percent and 56 percent, respectively, less likely to default than loans on American cars”.  What does this mean?  Should credit restrictions be tighter on American cars.  Time will tell.


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