Chrysler Financial - Mortgage Crisis Caused Credit Crunch Spreads To Autos
Author: Rob K. Blake
Published: August 15, 2008
Chrysler Financial did not raise the entire $30 Billion in capital they were seeking mainly due to the spreading of the credit crunch brought on by the mortgage crisis. Chrysler Financial is the lending arm of the auto maker and tight credit won’t help slumping sales.
Chrysler Financial obtained $24 billion instead significantly below the $30 Billion target. The Chicago Tribune reports Chrysler Financial spokesperson Bill Porter saying,
“The $24 billion still provides us with ample liquidity.”
Robert Schulz, senior credit analyst at Standard & Poor’s, said of the capital shortfall,
“We weren’t necessarily expecting that they would get the full $30 billion because of the credit markets.”
It’s seems as if analysts and those in any form of lending all know the mortgage crisis has spread to all lending industries causing the same credit crunch we are experiencing in the mortgage markets. Tighter credit then causes sliding sales which lowers real estate values, which in turn reaffirms the bankers desire for tighter credit still.
It’s a never-ending death spiral for the industry…a catch 22 if you will.
Good Luck!
Author: Rob K. Blake
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