Saturday, May 24, 2008

Where Will That Rebate Check Go

With the IRS blasting an estimated $105 billion dollars toward the public, the great question is where that check will go. I'm skeptical that it'll provide the economic stimulus that folks in government were expecting - I've always assumed that folks will use it to pay off credit card bills or buy their next tank of gas, neither of which stimulates the US economy. But paying off bills will get some Prosper loans paid down. The Orlando Business Journal is estimating that $28 billion of the $105 billion (26.6%) will go toward debt repayment, implying that a lot of money will flow into Prosper loan repayment.

I'll be watching for increased prepayments and, hopefully, some recovery from those doggy late loans while the checks roll out between now and the end of July.

2 comments:

Steveington said...

I feel the same way. When I initially heard about the rebate checks, I was hoping for some larger payments and my "lates" to go current.

seat rentals fort bonifacio said...

I also wonder if the same applies here in our corporation. It really figures that there's likely an increase in the money flow especially with the money returning back like investments in full force payment.