Mortgages by Walmart??

My concern with Walmart branching out into so many interests is what happens to the country when they fail or have financial trouble?

Their percentage share of their current markets - toys, groceries, prescriptions - is scary enough.

Judging by the folks strolling through Wal Mart in O'town, Wal-Mart needs to crank up it's subprime lending machine.

Judging by the folks strolling through Wal Mart in O'town, Wal-Mart needs to crank up it's subprime lending machine.

:nono1: Be nice Bob;didn't you read The Millionaire Next Door?

My concern with Walmart branching out into so many interests is what happens to the country when they fail or have financial trouble?

Their percentage share of their current markets - toys, groceries, prescriptions - is scary enough.

What happens to the county? They get cheaper services, or pay for better service. If they get cheaper services, the county residents will be spending their money on other things or invest it in promising industries.

What happens to the county? They get cheaper services, or pay for better service. If they get cheaper services, the county residents will be spending their money on other things or invest it in promising industries.

My concern is the effect on our countRy's economy as a whole when one company/corporation is so heavily vested in a variety of industries, not another discussion about the free market system because people got tired of arguing about Palestinians with you.

At its current rate of growth, market share, and expansion, a failure of Walmart would be similar to a stock market crash. They currently control 30% of the US market for household staples, 40% of all DVD sales, 25% of drug sales, and 35% of the grocery market.

My concern is the effect on our countRy's economy as a whole when one company/corporation is so heavily vested in a variety of industries, not another discussion about the free market system because people got tired of losing the Palestinian argument with you.

At its current rate of growth, market share, and expansion, a failure of Walmart would be similar to a stock market crash. They currently control 30% of the US market for household staples, 40% of all DVD sales, 25% of drug sales, and 35% of the grocery market.

If the rest of the market wants more share, they should build a better or cheaper widget. If Wal-Mart fails, there would be, as there always has been, enough money in household staples, DVDs, drugs and groceries for someone to provide those products to the market. Amazon seems to have found a good model. I fixed your last sentence in the first paragraph for you.

I fixed your last sentence in the first paragraph for you.

No, you made the sentence inaccurrate. Frustrating people w/ inaccuracies, nitpicking, and unrelated examples so that they refuse to talk to you does not mean you "won" the argument.

My concern is that in many areas Walmart has driven "someone to provide those products to the market" out of business, so in case of a failure of Walmart (which I feel needs to be checked under anti-trust laws) there IS no alternative.

The free market examples you love fall apart because of their monopoly - they can't build a better or cheaper widget because Walmart controls the suppliers of the raw materials for a widget, the transportation they need to get the widget to market, and will undercut any of their attempts to sell the widget until they drive them out of business.

No, you made the sentence inaccurrate. Frustrating people w/ inaccuracies, nitpicking, and unrelated examples so that they refuse to talk to you does not mean you "won" the argument.

My concern is that in many areas Walmart has driven "someone to provide those products to the market" out of business, so in case of a failure of Walmart (which I feel needs to be checked under anti-trust laws) there IS no alternative.

The free market examples you love fall apart because of their monopoly - they can't build a better or cheaper widget because Walmart controls the suppliers of the raw materials for a widget, the transportation they need to get the widget to market, and will undercut any of their attempts to sell the widget until they drive them out of business.

I'm open to any of your challenges on inaccuracies, which no one noted, or unrelated examples. Probably best to discuss over there, but since you brought it up I thought I'd address it.

Do you have examples of where Wal-Mart has used predatory tactics? I'm sure the feds would love to see them. In business school they taught me that if you can cut costs by vertical or horizontal integration, that's a good thing for everyone involved, except those that cannot compete. Because you like the corner grocery store that can't either offer a product that consumers are willing to pay more for or offer a cheaper product does not mean that the rest of the market should be forced to subsidize your preferences. Wal-Mart is not a monopoly.

For the record, unless I would be making at least 3 stops if I didn't go, I don't shop at Wal-Mart.

I agree with the point that the market will react and other vendors will pick up the slack that Walmart leaves. In all reality Walmart is going nowhere however! The concern with one company having such market share is futile, do you suggest limiting their ability to compete? Is it wrong that they beat the competition but solid business model and provide services and cost at a fraction of most others? I imagine you are concerned with Google also, maybe Boeing?

i bet the fact that Florida led the nation in 2005 for mortgage fraud has a little something to do with WM knowing it would be a good time to enter that market here...and just look at the nation wide foreclosure rates...brought to you by the banking and MTG. industry...remember the S&L's? At least if the WM tries to foreclose you can go shoplift some PEZ.

:nono1: Be nice Bob;didn't you read The Millionaire Next Door?

I shop there. Let's just say it ain't Destin. Even so, SunTrust has a branch, there's a McDonalds, beauty salon etc. Be sure to have pepper spray with you for late night forays to shop there.

Its amazing that Walmarts critics usually are the people who actually need their low costs the most. If their competitors had as good a business model as Walmart, there would be no criticism of Walmart; they dont have such a business model. I would think that if Walmart can save us money on our mortgage, I would be the first one in line to apply for their service.
As for as them having a business failure, this is the weakest argument of them all, they are stronger than any of the other lenders anywhere and are getting stronger every day. This would be a wonderful thing if it happens, this company actually increases the average guys standard of living. Their lower prices cancel out gasolines higher prices so we dont have much inflation, and thats a good thing. A Walmart mortgage, that would make some of the local lenders quake in their boots, love the thought.

Its amazing that Walmarts critics usually are the people who actually need their low costs the most. If their competitors had as good a business model as Walmart, there would be no criticism of Walmart; they dont have such a business model. I would think that if Walmart can save us money on our mortgage, I would be the first one in line to apply for their service.
As for as them having a business failure, this is the weakest argument of them all, they are stronger than any of the other lenders anywhere and are getting stronger every day. This would be a wonderful thing if it happens, this company actually increases the average guys standard of living. Their lower prices cancel out gasolines higher prices so we dont have much inflation, and thats a good thing. A Walmart mortgage, that would make some of the local lenders quake in their boots, love the thought.

I hope they underwrite and process these loans in Communist China where they make all those wonderful products that have raised our standard of living.

I hope they underwrite and process these loans in Communist China where they make all those wonderful products that have raised our standard of living.

Chinese children are quite skilled and can easily process applications by calculating credit scores and debt to income ratios.

Chinese children are quite skilled and can easily process applications by calculating credit scores and debt to income ratios.

...unlike the U.S.A. strip mall Sub-Primates during the RE frenzy.


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Its amazing that Walmarts critics usually are the people who actually need their low costs the most. If their competitors had as good a business model as Walmart, there would be no criticism of Walmart; they dont have such a business model. I would think that if Walmart can save us money on our mortgage, I would be the first one in line to apply for their service.
As for as them having a business failure, this is the weakest argument of them all, they are stronger than any of the other lenders anywhere and are getting stronger every day. This would be a wonderful thing if it happens, this company actually increases the average guys standard of living. Their lower prices cancel out gasolines higher prices so we dont have much inflation, and thats a good thing. A Walmart mortgage, that would make some of the local lenders quake in their boots, love the thought.

Oh Goody!
I might actually go into Walmart to see their loan officers passing out coupons for application fees dressed in Blue aprons, while directing dead beat parents to Aisle 7 for prohylatics. :roll:
This ought to be good.

There's a big difference between business models for Goods vs. Services.

Chinese children are quite skilled and can easily process applications by calculating credit scores and debt to income ratios.

It's bad enough we all may end up delivering pizzas to each other because all manufacturing left the U.S.A. The ultimate insult would be being turned down for your home equity loan by a fourth grader in Shanghai.

It's bad enough we all may end up delivering pizzas to each other because all manufacturing left the U.S.A. The ultimate insult would be being turned down for your home equity loan by a fourth grader in Shanghai.

I'm betting the 4th grader in Shanghai probably has more money saved in her piggy bank than many of the U.S. HELOC Slaves.

....call it tough love.

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I'm betting the 4th grader in Shanghai probably has more money saved in her piggy bank than many of the U.S. HELOC Slaves.

....call it tough love.

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We need those HELOC checks to buy all those 69.99 bikes and 29.99 DVD players that make us "happy".

We need those HELOC checks to buy all those 69.99 bikes and 29.99 DVD players that make us "happy".

Not to mention the 50" plasma tvs, Hummers and--soon--$600 iPhones!!

Happy, happy, joy, joy....happy, happy, Joy!




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Its amazing that Walmarts critics usually are the people who actually need their low costs the most. If their competitors had as good a business model as Walmart, there would be no criticism of Walmart; they dont have such a business model. I would think that if Walmart can save us money on our mortgage, I would be the first one in line to apply for their service.
This would be a wonderful thing if it happens, this company actually increases the average guys standard of living. Their lower prices cancel out gasolines higher prices so we dont have much inflation, and thats a good thing.

The Walmart business model is to make money selling you cheap products (often at prices they set just to drive their competition out of business), regardless of what it does to the community or economy.

Unlike Henry Ford wanting to build a car his workers can afford, Walmart does not increase the average guys standard of living. The average worker at Walmart makes $18,000 and does not have benefits, insurance, or the ability to afford most of the things they sell, even at those prices you love.

Walmart can't sell you things at those low-low prices while paying for goods made in the USA or a living wage for their employees. You sell part of your soul every time you shop at Walmart - hope that cheap plasma TV was worth it!

The "average guy" is not a walmart employee. The "average guy" is a walmart customer. Please advise how if I pay less for walmart goods than I pay anywhere else, how is this not improving my living standard? As for as the origin of these products, they are ALL made in China, no matter where you
purchase them.

Walmart will be in home loans eventually. It appears to be a problem for some of the people on this board and I am wondering why. About the only adverse posts here reflect to "the loan applications will be taken from some China person" or go there and get your mortgage and get your condoms while you wait on aisle 7. This is cute but drivel.

Why are these people objecting to walmart mortgages? I'll bet they are in the mortgage broker business? If so, I completely understand their grief.

The "average guy" is not a walmart employee. The "average guy" is a walmart customer. Please advise how if I pay less for walmart goods than I pay anywhere else, how is this not improving my living standard? As for as the origin of these products, they are ALL made in China, no matter where you
purchase them.

Walmart will be in home loans eventually. It appears to be a problem for some of the people on this board and I am wondering why. About the only adverse posts here reflect to "the loan applications will be taken from some China person" or go there and get your mortgage and get your condoms while you wait on aisle 7. This is cute but drivel.

Why are these people objecting to walmart mortgages? I'll bet they are in the mortgage broker business? If so, I completely understand their grief.

Let me be a little clearer. I own a mortgage brokerage and have been in the business for 20 years. The Walmarts and the Pricelines of the world offering mortgages have never caused me personally any grief. I do not consider them to be competition.

You are comparing a business model for goods (vacuum cleaners etc) with offering financial services. This is a totally different animal altogether.
Negotiating a goods price for a national chain is not the same as negotiating prices on mortgages. I don't have the time to explain to you how Pricing works in the secondary mortgage market, but trust me, it won't be anything to write home about if indeed they are able to get decent pricing initially based on their bond ratings.

Further after witnessing the subprime debacle,
I do not believe Walmart will be able to meet the needs of most of their clients. This attached article clearly shows the typical regular Walmart customer.

Much of the company's customer base is the "unbanked" or "underbanked" group of the U.S. population that has little or no access to banking services. And, that is what makes the decision seem so queer. With the current considerable problems of sub-prime lending, it is hard to imagine how a company like Wal-Mart would be able to screen credit risk better than banks and mortgage loan companies.

In lieu of the mortgage business, I would have prefered to see Federal Regulators allow them the Charter for Banking. I think they were too rash in their decision. I do not think it would have hurt small banks as much as they imagined. Perhaps a minute percentage of the unbanked population would have opened checking and savings accounts which would have been beneficial to our economy.
Save $50 on that plasma screen TV and then stash the money for their next purchase. But I do no think the average Wal-mart shopper thinks in those terms.

I can see them wanting the check cashing/paycheck advances type business.
They would likely compete strongly with the established businesses of that type.

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