OT: Deja VU: GM get’s back into sketchy financing…..

[Coronita]

Wow, history does repeat itself.

Summarize….
GMs financial unit, GMAC is now part of Ally Bank, which apparently is only lending to strong buyers and will continue to do so for GM…

However…GM is acquiring AmeriCredit for $3.5B, so that it can do riskier loans (again)…

Funny, I don’t recall taxpayers getting voting option to decide on the acquisition….

http://finance.yahoo.com/news/GM-to-pay-35B-for-auto-apf-507453632.html?x=0&sec=topStories&pos=4&asset=&ccode=

And so the madness continues….

DETROIT (AP) — General Motors Co. will buy AmeriCredit Corp. for $3.5 billion, a deal that allows the automaker to expand loans to customers with poor credit and offer more leases, key areas where GM must grow to accelerate its car sales.

[Arraya]

[quote=flu]

DETROIT (AP) — General Motors Co. will buy AmeriCredit Corp. for $3.5 billion, a deal that allows the automaker to expand loans to customers with poor credit and offer more leases, key areas where GM must grow to accelerate its car sales.[/quote]

This is why I laugh when Fannie and Freddie make threats about not letting people purchase a home within 7 years for strategically defaulting.

As the pool of credit worthy buyers shrinks, demand collapses. Demand collapses — jobs collapse — — pool of buyers collapse — credit worthiness collapses and of course;

http://piggington.com/employer039s_increased_use_of_credit_check

Maybe people should save? Nope, People save — demand collapse — the cycle continues.

[Arraya]

[quote=flu]

DETROIT (AP) — General Motors Co. will buy AmeriCredit Corp. for $3.5 billion, a deal that allows the automaker to expand loans to customers with poor credit and offer more leases, key areas where GM must grow to accelerate its car sales.[/quote]

This is why I laugh when Fannie and Freddie make threats about not letting people purchase a home within 7 years for strategically defaulting.

As the pool of credit worthy buyers shrinks, demand collapses. Demand collapses — jobs collapse — — pool of buyers collapse — credit worthiness collapses and of course;

http://piggington.com/employer039s_increased_use_of_credit_check

Maybe people should save? Nope, People save — demand collapse — the cycle continues.

[Arraya]

[quote=flu]

DETROIT (AP) — General Motors Co. will buy AmeriCredit Corp. for $3.5 billion, a deal that allows the automaker to expand loans to customers with poor credit and offer more leases, key areas where GM must grow to accelerate its car sales.[/quote]

This is why I laugh when Fannie and Freddie make threats about not letting people purchase a home within 7 years for strategically defaulting.

As the pool of credit worthy buyers shrinks, demand collapses. Demand collapses — jobs collapse — — pool of buyers collapse — credit worthiness collapses and of course;

http://piggington.com/employer039s_increased_use_of_credit_check

Maybe people should save? Nope, People save — demand collapse — the cycle continues.

[Arraya]

[quote=flu]

DETROIT (AP) — General Motors Co. will buy AmeriCredit Corp. for $3.5 billion, a deal that allows the automaker to expand loans to customers with poor credit and offer more leases, key areas where GM must grow to accelerate its car sales.[/quote]

This is why I laugh when Fannie and Freddie make threats about not letting people purchase a home within 7 years for strategically defaulting.

As the pool of credit worthy buyers shrinks, demand collapses. Demand collapses — jobs collapse — — pool of buyers collapse — credit worthiness collapses and of course;

http://piggington.com/employer039s_increased_use_of_credit_check

Maybe people should save? Nope, People save — demand collapse — the cycle continues.

[Arraya]

[quote=flu]

DETROIT (AP) — General Motors Co. will buy AmeriCredit Corp. for $3.5 billion, a deal that allows the automaker to expand loans to customers with poor credit and offer more leases, key areas where GM must grow to accelerate its car sales.[/quote]

This is why I laugh when Fannie and Freddie make threats about not letting people purchase a home within 7 years for strategically defaulting.

As the pool of credit worthy buyers shrinks, demand collapses. Demand collapses — jobs collapse — — pool of buyers collapse — credit worthiness collapses and of course;

http://piggington.com/employer039s_increased_use_of_credit_check

Maybe people should save? Nope, People save — demand collapse — the cycle continues.

[CA renter]

Bingo, Arraya,

——————

I cannot believe GM is doing this all over again. But, why should I be surprised? Subprime lending for housing never went away, it just transferred from the private sector to the public sector (FHA and low down GSE loans).

Hopefully someday, this nightmarish credit bubble will end. Yes, we’ll have deflation, but it’s the ONLY way for us to work our way out of this mess in a sustainable way. Everything they’ve done thus far is making the problem bigger and longer-lasting.

[CA renter]

Bingo, Arraya,

——————

I cannot believe GM is doing this all over again. But, why should I be surprised? Subprime lending for housing never went away, it just transferred from the private sector to the public sector (FHA and low down GSE loans).

Hopefully someday, this nightmarish credit bubble will end. Yes, we’ll have deflation, but it’s the ONLY way for us to work our way out of this mess in a sustainable way. Everything they’ve done thus far is making the problem bigger and longer-lasting.

[CA renter]

Bingo, Arraya,

——————

I cannot believe GM is doing this all over again. But, why should I be surprised? Subprime lending for housing never went away, it just transferred from the private sector to the public sector (FHA and low down GSE loans).

Hopefully someday, this nightmarish credit bubble will end. Yes, we’ll have deflation, but it’s the ONLY way for us to work our way out of this mess in a sustainable way. Everything they’ve done thus far is making the problem bigger and longer-lasting.

[CA renter]

Bingo, Arraya,

——————

I cannot believe GM is doing this all over again. But, why should I be surprised? Subprime lending for housing never went away, it just transferred from the private sector to the public sector (FHA and low down GSE loans).

Hopefully someday, this nightmarish credit bubble will end. Yes, we’ll have deflation, but it’s the ONLY way for us to work our way out of this mess in a sustainable way. Everything they’ve done thus far is making the problem bigger and longer-lasting.

[CA renter]

Bingo, Arraya,

——————

I cannot believe GM is doing this all over again. But, why should I be surprised? Subprime lending for housing never went away, it just transferred from the private sector to the public sector (FHA and low down GSE loans).

Hopefully someday, this nightmarish credit bubble will end. Yes, we’ll have deflation, but it’s the ONLY way for us to work our way out of this mess in a sustainable way. Everything they’ve done thus far is making the problem bigger and longer-lasting.

[Coronita]

[quote=CA renter]Bingo, Arraya,

——————

I cannot believe GM is doing this all over again. But, why should I be surprised? Subprime lending for housing never went away, it just transferred from the private sector to the public sector (FHA and low down GSE loans).

Hopefully someday, this nightmarish credit bubble will end. Yes, we’ll have deflation, but it’s the ONLY way for us to work our way out of this mess in a sustainable way. Everything they’ve done thus far is making the problem bigger and longer-lasting.[/quote]

I can…It’s essentially run by the government now. It’s going to IPO, and it needs to have the numbers look great…What better way than to sell cars to people can’t afford. There was a company that got in trouble doing this…Mitsubishi…..

[Coronita]

[quote=CA renter]Bingo, Arraya,

——————

I cannot believe GM is doing this all over again. But, why should I be surprised? Subprime lending for housing never went away, it just transferred from the private sector to the public sector (FHA and low down GSE loans).

Hopefully someday, this nightmarish credit bubble will end. Yes, we’ll have deflation, but it’s the ONLY way for us to work our way out of this mess in a sustainable way. Everything they’ve done thus far is making the problem bigger and longer-lasting.[/quote]

I can…It’s essentially run by the government now. It’s going to IPO, and it needs to have the numbers look great…What better way than to sell cars to people can’t afford. There was a company that got in trouble doing this…Mitsubishi…..

[Coronita]

[quote=CA renter]Bingo, Arraya,

——————

I cannot believe GM is doing this all over again. But, why should I be surprised? Subprime lending for housing never went away, it just transferred from the private sector to the public sector (FHA and low down GSE loans).

Hopefully someday, this nightmarish credit bubble will end. Yes, we’ll have deflation, but it’s the ONLY way for us to work our way out of this mess in a sustainable way. Everything they’ve done thus far is making the problem bigger and longer-lasting.[/quote]

I can…It’s essentially run by the government now. It’s going to IPO, and it needs to have the numbers look great…What better way than to sell cars to people can’t afford. There was a company that got in trouble doing this…Mitsubishi…..

[Coronita]

[quote=CA renter]Bingo, Arraya,

——————

I cannot believe GM is doing this all over again. But, why should I be surprised? Subprime lending for housing never went away, it just transferred from the private sector to the public sector (FHA and low down GSE loans).

Hopefully someday, this nightmarish credit bubble will end. Yes, we’ll have deflation, but it’s the ONLY way for us to work our way out of this mess in a sustainable way. Everything they’ve done thus far is making the problem bigger and longer-lasting.[/quote]

I can…It’s essentially run by the government now. It’s going to IPO, and it needs to have the numbers look great…What better way than to sell cars to people can’t afford. There was a company that got in trouble doing this…Mitsubishi…..

[Author]

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