Re: Banks -- What in the world are they thinking? <br><br>Is it an improved balance sheet ? inventory and floorplan exposure are tending down in relative equals which I would assume means there has been little debt reduction other than that of retail sales, the cash amount of 600,000 , well, how are the seasonal trends for the next six months forecasted will the cash just burn away ? whats the banks exposure look like if it does did it last year ?<br><br>There are a lot of variables here and perhaps your over simplifying just to make the point IDK<br><br>I think what the wholesale guys want to see right now is how much debt reduction can you produce on top of just sold unit reduction <br>i.e <br>are you attacking your debt, or are you barely alive <br><br>This is why we are seeing high inventoried big discounters hit the wall hard the theory is simple low profit means no additional debt reduction, the monster is eating itself plain and simple . The banks dont want to hold the spoon<br><br>By No offense intended on 7/1/2009 10:29 AM <br>Re: Banks -- What in the world are they thinking? <br><br>Most banks don't "think" anymore. They are financial robots that make decisions based on the spreadsheet formula that some overpaid executive in fancy suite on top of a high rise monument to themselves will dictate.<br><br>This country was built on small town banks talking to real people about real problems and working together to solve them and help small business owners and farmers grow their business and prosper in the neighborhood.<br><br>We don't have "relationships" with bankers anymore, nor do we want them given the current crop of unethical greed-driven people that have pushed this country into the worst recession in fifty years.<br><br>When the banks get back to "helping" people instead of "screwing" people, and we can deal face-to-face over a desk or cup of coffee, then maybe things will start to improve.<br><br>In today's world of automated decisions driven by a financial formula, there is no human touch put on the decisions. Just look at the answer above and you see what I mean. Nothing about the dealer, the people she/he employs, the value they bring to their customers, delivering enjoyment to people, and trying to stay afloat in an environment that they did not create. These hard working people are paying for the sins of a lot of greedy bastards that were only interested in building their bonuses off the very backs of the people they are now screwing.<br>By Bob Zagami on 7/2/2009 6:04 AM <br>Re: Banks -- What in the world are they thinking? <br><br>Bob,<br><br><br>Where do you suppose the personal relationship banking experiences went ?<br><br>The dealer starts out with a local bank, then he feels he has outgrown them and goes looking for the BIG bank that can loan him $$ based on his paperwork, without all the hassle of boards and personal contact.<br>Now that big bank is the criminal, because they want the same insulations that caused the dealer to leave the small banks<br><br>You talk out of both sides of your mouth Bob Do you want the bank to be there or not ? Can they be there if they continue to wholesale finance 100% of invoices for the dealers and then finance large advances on the other side for longer and longer terms ?<br><br>Where exactly does a "thinking" bank win? low default rates , terrific when they keep em, but the trade cycle is 3-5 years, and because the term is so long the customer is WAY upside down ,and the dealer needs even bigger advances to trade, and the new term is longer etc... etc... etc...<br><br>But hey I understand, the banks dont "think" <br><br>lets not pretend that dealers are just a