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.
:angry: 
