Hurray! Here come more bad loans!
I know I’m getting to be a broken record on this, but how long will this country keep trying to cure the disease with the disease?
Headline: “GMAC loosens credit to make vehicles easier to buy.” Call it the subprime auto loan prescription.
Easier auto loans for more people.
The struggling financing arm of General Motors Corp., rescued by $5 billion in federal aid on Monday, plans to use some of the money to make cars and trucks more affordable to a larger pool of customers.
It’s the first time that a financial institution has said it will use money from the $700 billion bank bailout to offer more affordable credit to consumers.
On Tuesday, Detroit-based GM said it will offer zero percent or low-interest financing on some slower-selling 2008 and 2009 models as part of a year-end sales push — a move made possible by the newly available cash at the financing arm.
(link)
Translation: More bad loans to risky borrowers.
Flashback Nov. 17: Dumb idea of the day: Hey, let’s encourage a nation in debt to borrow and buy even more!
Flashback Nov. 25: Borrow. Spend. Panic. Repeat.
Mish sums this madness up perfectly:
The more money wasted on stupidity like this, the longer the recession, and the slower the recovery. There is only so much capital, and using that capital to keep failed business models alive is sickening.
Pardon me while I bang my head against the wall some more.
See what others have said
Note from Michelle: This section is for comments from michellemalkin.com's community of registered readers. Please don't assume that I agree with or endorse any particular comment just because I let it stand. A reminder: Anyone who fails to comply with my terms of use may lose his or her posting privilege.
Trackbacks
- The You Fat Bastard Tax « JoHNBRoDiGaNDoTCoM
- GMAC: Fix The Economy With More Bad Loans? « Jane Q. Republican
- Papa Mike’s Blog » Blog Archive » Hurray! Here Come More Bad Loans!
- ButAsForMe! » Hurray! Here come more bad loans!
- Some More Bailout Notes « 36 Chambers - The Legendary Journeys: Execution to the max!
Comments
You must be logged in to post a comment.
Categories: Subprime crisis
Power Line
» More From the East Anglia Archives
American Thinker
» Sarah Palin and the low ebb of the cultural leftRedstate
» Morning Briefing for November 24, 2009Doug Ross @ Journal
» ACORN pwnage part II: Breitbart's BigGovt Lowers the BoomBig Government
» BREAKING: San Diego ACORN Document Dump ScandalVillainous Company
» Amateur Hour in the Oval Office Continues....Nice Deb
» O
Sickening, that about covers it.
More like criminal. Think Enron. WorldComm. Congress.
Barney Frank and Chris Dodd approve, no doubt.
And Paulson and Bernanke and Bush. Sigh.
Michelle..you need to reorganize your enterprise as a bank holding company!!!
then you too can get a loan!!
if you get the loan, you can give me a small ‘loan’ as a way of saying thanks for the idea!!!
Re: Cecero
And they will get an even better deal than the rest of the population.
If you continue to bang your head 2 things are going to happen,
1/ You will hurt your head.
2/ You may damage the wall.
I recommend drinking heavily.
and if they don’t give you a bailout..scream racism and sexism!!! then SUE EM!!!
you can’t lose!!!
Well really, if you go back to 2003 and what Congress did (or rather failed to–
OHHH ANIMATED STICK FIGURE!!!
I’m sorry.
Like all liberals, I get easily distracted by shiny and/or movey things.
What is this thread about again?
Jeri Ryan…borg babe…
Not zombies. Seriously though, I am going to need a van in the future…. hmmmmm
It makes me sick, but I am taking advanctage where I can. I just refied my house from a 30 year to a 15 year mortgage and basically eliminated more than ten years of payments for less than $100 a month aditional out of pocket.
On second thought, maybe I shoud have tried for a 10 year mortgage so I could not afford it and waited for someone to pay it for me!
I’d go for 30 years…soon the dollar will be worthless, and you’ll be paying them back with play money!!
Run for your lives! It’s the zombie apocolypse!
*Exasperated Sigh*
Well with the rate they are printing money, I will be able to pay off my mortgages with one days pay in a few months.
Drinking heavily will help.
Any chance I can get GMAC to finance a new Toyota Tundra?
>It makes me sick, but I am taking advanctage where I can
I am on assignment for the next few years (first to another city, then to another country) so I cannot refinance easily as I am renting out my house.
On the positive side, when I bought my house I fought with the mortgage broker to get a 30 year fixed mortgage (and the rate is still only 5 3/4, so I am happy).
So I am taking advantage by opening CDs at GMAC Bank. They are the highest interest rate right now.
This bailout catterwalling is getting ridiculous. The entire problem with the GM financing arm is they weren’t able to make good loans to people with good credit. Now they can.
Is making loans to people who can afford it really a problem?
Of course not. They aren’t making loan to people who shouldn’t get loans, they’re making standard loans to typical Americans.
By calling for the end of these GOOD loans, some of you are acting like we need to wipe out ALL debt, and that is NOT a free market position. Debt in and of itself is as much of a tool of capitalism and the free market as capital.
Where is the GOP?; These are the kinds of actions for which they need to get out in front of and condemn; And they need to lump Bush in with the rest of them; Bush said as much with his initial speech about the need for a bailout back in September, something like we need to get more money into the financial markets so people can start borrowing again; WRONG!; The government leads the way in setting the poorest of examples for living within your means; Speak up GOP!; Help the voting public to identify these repeat offenders so that we may throw them out, including the RINOS.
Out of the white house, minority in congress.
Yes sonofdy, I know; But they are still the only legitimate vehicle in which fiscal conservatives can right the ship with; All other efforts have proven counterproductive; Reshaping the GOP is the only path back to founding principles; Bank on it!
In which case, 1/ You will hurt your head, or your head will hurt.
2/ You may damage the wall when you fall down, resulting in (see item 1).
And those idiots deserved to be tossed out! They blew it bigtime starting in the mid-90’s when they started spending like liberals, expanding the role of government. Bush accelerated the socialist takeover. The GOP is worthless in its present configuration.
This unrestrained bailout bull%&^$ is proof small government is in a deep coma.
If they had good credit, they could get a loan from a number of financial institutions. Financial institutions that do not need a bailout because they exercise good financial management.
Oh, and I suppose you actually know they are making loans to people with good credit. You wouldn’t be stupid enough to just spout off with unverifiable conjecture. Of course not.
bjc – I’d love to agree with you but I’ve been hearing that for the past 15+ years. You stop believing it after a while.
#24: But you will be drunk so it will be more fun. Besides its about as productive as contacting congress these days.
They can build Volgas, but can they sell Volgas? Only if they are free. — Axiom proved in the Soviet era.
Hang in there Michelle, we are all with you on this one. From the beginning, bailout was a four letter word. Followed by the other four letter word ’stimulus package’.
If Biden can say it’s a three letter word, JOBS, so can I. Who needs math to preach economics.
Better?
This whole stupid mess could be fixed by Congress tomorrow. I read this somewhere else and thought it was a pretty good idea.
Enough whining about it!
Lets march on Washington and kick some ass. I am sick of this and feel like we need to go postal in order for the idiots in Washington to get our message!
Here in Honolulu during the Crapsandwich Salad Days, a Nissan dealer was offering a free car if you bought a truck. Oh for the good old days.
The NY Times Web of all places had an article a week or so ago about bankers in India wondering how anyone would be dumb enough to loan money to people who obviously couldn’t pay it back. See – if you study math instead of having mommy do your homework for you, you can grow up to be a successful banker.
We are somewhat behind the curve as to where I thought we would be after the Chrysler/New York City Loans in the 70s.
City after city pours hundreds of millions of dollars into sports stadiums to subsidize million dollars drug habits of muti-million dollar athletes so I guess it has been coming to us in Stealth mode.
At least with this loan GM will not have to fix their basic flaws anytime soon and now the UAW can build another golf resort for those non-workers in the Job Bank.
GOD help America, we are not doing well on our own.
Welfare to the big three. Indirectly, welfare “free” cars to those who refuse to work.
You only have to be dumb enough to be a liberal socialist. And unlucky enough to have one as president.
The reason for this meltdown is that the Clinton administration held a gun to the heads of the lenders, figuratively, and told them to lend to low-income people. When the lenders balked because they knew it was a bomb waiting to explode, they were threatened with criminal and civil actions. The lenders caved because they knew the litigation costs would bankrupt them. It is true that lenders did falsify the loan documents but they did it because of the threat of litigation from the Clinton administration.
When the economy boomed, everything was fine. When it tanked, their fears became reality. And they went bankrupt anyway.
The next FOUR YEARS are all about Jeri Ryan, and how her divorce with her crazy husband, Jack Ryan, helped him lose in Obama’s first election victory as U.S. Senator in 2004.
I blame Jeri for not accepting her husband’s outrageous demands involving certain “social” clubs.
How about an “It’s All Jeri’s Fault” logo/bumper sticker/button??
Will the only grownup congresscritter left in the world please stand up. Is there no end to this nonsense? Nani-state economics on steroids!
Persoonally, I blame Jack for acting like a Dem president. Public figures should know better.
I wouldn’t dream of “sharing” my wife with anyone.
If I were married to Jeri Ryan, I sure wouldn’t share.
Jeb Hensarling, R TX
Jim Demint R SC
Plymouth #40
I like both, especially Demint. Someone has to get us back on track, preserving whatever is left of this republic.
Does anybody realize that the head of GMAC is J. Ezra Merkin, who steered investors into the welcoming clutches of Bernard Madoff? Why isn’t this connection being investigated before the Treasury Department confers bank status on this company? Indeed, why is the media silent on this?
GMAC isn’t the only one. The wife and I looked at both Toyota and Honda’s yesterday and were greeted with the typical hard-sell of “1.9% loans!”
They had no idea who we are or what kind of credit risk we are, but the first words out of their mouth were all about low-low-low rates on car loans. Even after we told them that we were only looking, and would be paying cash if/when the time came to buy, they still couldn’t stop mentioning their 1.9% loans.
This isn’t a GMAC problem; it’s an American problem. Everyone who sells anything to consumers has become so addicted to cheap-money, they know nothing else. It’s their only mode of operation.
I’ve been thinking to myself “why does this have to be such a hard recession? Why can’t we simply stop borrowing for awhile and live within our ample (as a nation) means?” That would still leave a bruise, but it wouldn’t be a disaster.
Now I know why: because a large percentage of the USA – including very well compensated people who shouldn’t have to borrow – know nothing else. Unless they are basically punished into learning to live within their means, they never will.
That’s ugly news, gang.
I have noticed on other blogs people on the pro-bailout side getting super emotional about this issue. People who were once rational now rant like New York Times editorialists about how people who don’t agree with the bailout hate the workers, love Wall Street fat cats, and want to destroy America.
It’s like amnesty debate all over again.
People have a right to a car!
How will they get to the Messiah’s inauguration without one?
How will they get to the welfare office without a car? Filled with GWB bailout gas and The One’s neverending promise of change to the greatest country in the world.
Damn. Just Damn.
Step away from the crack pipe!!! That was the most nonsensical conjecture I have witnessed on this board in a while. Show me proof of your claims. I will save you the trouble. There is none. I gurantee you I could walk on any car lot today and be financed in 30 minutes. There is plenty of loan $ for those with good credit. What they want gov’t $ for is to loan to those with marginal to poor credit in order in to maintain the unsustainable sales numbers witnessed over the last decade (one which encourages people to trade in every 3 years). I just bought a new tractor using John Deere credit. Why are they able to provide credit for a specialty product but auto companins can’t? Becasue there is no shortage of credit for those of us who have been prudent, not over extended our means, and paid our bills. Giving creidt to someone with marginal/bad cridt history now only prolongs the predictable fall out. Of course the gov’t only cares about propping up this system long enough to get re-elected. No long term considerations given.
thats right!! what do you marry a beautiful hollywood babe for after all???
she should have been in commercials for him, wearing victoria’s secret (or better yet something from frederic’s) saying if you elect my husband, you’ll be seeing a LOT more of me in the coming years…
he’s have won in a landslide!