[quote=SK in CV][quote=flu]
My point is that this country has spent to the point beyond which we are now heavily in deficit spending there’s no point even in talking about reducing the debt. And the economy shouldn’t be growing. It’s overgrown…I don’t see the point in artificially proping up an economy that will sink back down once the stimuli is taken away. Can’t stimuli away to N=N+1 forever….
But i don’t mind if that’s the direction the country wants to go, and we want to enslave the millinials in a lot of debt. Sure as hell won’t be my kid.[/quote]
The economy shouldn’t be growing? I don’t get that. It doesn’t have to be propped up in perpetuity. It needs to be held up until moderate growth returns. At which time spending SHOULD be cut, taxes SHOULD be raised, and debt SHOULD be paid down.[/quote]
Imho, not the way it is “growing” right now…
Small tidbit…What is the point of expanding capacity at GM and Chrysler if the point is just to sell cars to people who can’t otherwise qualify, and must get a subprime loan in order to get into a new car. Me thinks those people should have no business getting a new car to begin with, and GM should have no business for getting back into subprime financing in order to meet it’s sales numbers…..The majority of those subprime buyers are gonna be back to square one..Unable to pay…Just like before…And then what? Another taxpayer bailout for GM/Chrysler?
“GM Financial reportedly provides just more than 8 percent of GM’s financing, but government-owned Ally Financial Inc., formerly GMAC Inc., provides many of the remaining loans.
Taxpayers are still owed $44.5 billion from bailouts to GM and GMAC, according to a special inspector general’s report released July 25.”
Automotive News reports Chrysler owes some of its recent sales success to a resurgence of subprime loans. Chrysler has a history of working with customers burdened with questionable finance histories, and lenders have begun to loosen credit restrictions. As a result, 29 out of every 100 auto loans for new Chrysler models went to buyers with a credit score under 680 in the first quarter of this year. Experian Automotive classifies loans tied to that credit score as subprime. What’s more, nearly 21 percent of Dodge sales through May went to buyers with annual interest rates of 10 percent or more on an average term of 71 months.
Do we really think that without these subprime loans (that are inevitably going to either fall flat on ones face or be be proped up by more governement bailouts), that GM/Chrsyler can really grow “organically”?
Welcome to the new American Economy….Same as the old American Economy.
