GM Ramps Up Risky Subprime Auto Loans To Drive Sales

story from Investors.com
July 27, 2012

GM Ramps Up Risky Subprime Auto Loans To Drive Sales
It seems that (our) General Motors is giving out car loans like crazy to credit scores that are "sub-prime".

"Sub-660" is generally considered "Sub-Prime" (FICO scores)

In fact it could be that those loans are a major part of GM's business.

Well no wonder they Appear to be doing so good !!

Makes people think that GM's "success" might be hinged on "Cook-Book" loans.

I wonder what happens if and when those loans go "South"

President Obama has touted General Motors (GM) as a successful example of his administration's policies. Yet GM's recovery is built, at least in part, on the increasing use of subprime loans.

The Obama administration in 2009 bailed out GM to the tune of $50 billion as it went into a managed bankruptcy.

Near the end of 2010, GM acquired a new captive lending arm, subprime specialist AmeriCredit. Renamed GM Financial, it has played a significant role in GM's growth .......

It looks like GM sneaked back into the banking business afterall

reply to post by xuenchen


President Obama saved the auto industry from total collapse. Ya know, middle class jobs. Deal with it. "Someone" thinks anything on Drudge is worthy of a thread.

reply to post by KireDj

Indeed...and there are plenty of recordings of Franks and Dodd both saying before the Bubble blew our markets apart, that the housing markets were perfectly healthy and Fannie/Freddie were just great with sunshine and and good news for all.

Sounds to me like they never learn. First the Tech/Net stock Bubble, then the Real Estate Bubble and now the Auto Loan Bubble?? Well, history never seems to fail at repeating itself.

I'm glad you posted this thread.

So- do you think this bankster-political bubble will blow before or after the student loan one?

Man, they just keep trying to "save" all the wrong industries in all the wrong ways, don't they. I'm all in favor of reviving the US auto industry, but they just don't want to touch the real causes- all they do is throw money and b.s. Float more bubbles, create a temporary illusion.

Grrrrr.

Originally posted by KireDj
reply to post by xuenchen

 

President Obama saved the auto industry from total collapse. Ya know, middle class jobs. Deal with it. "Someone" thinks anything on Drudge is worthy of a thread.

LL back at you.
perhaps what you say is true in your small middle class world
it is also true that once upon a time there were people who went out every evening
to light the street lamps when their employment was threatened by the advent of electric lights, they rightfully complained.

they were declared Enemies of PROGRESS and crushed.

enjoy the reprieve at the taxpayer expense
but you'd do well to step aside eventually
lest you too, be declared an Enemy of PROGRESS

and crushed as well

you see, those lamp-lighters,were swept aside violently,
not because of a desire to improve the general welfare,
but because there was money to be made with electric lamps.

and money to be saved by not having to pay salaries

GM plant employees will be swept aside eventually
as the money runs out, and it will
the executives and shareholders know this and are
squeezing every last dollar they can game out of the system
with no regard or concern for:

Ya know, middle class jobs.

so many will, eventually have to...

Deal with it.

the OP is pointing out an aspect of this, how your bosses are once again GAMBLING
[i am, of course, presuming by your post, and the oh so obvious relish in stating it
that you are an employee of the auto industry]

but some are only concerned with their standard of living

one imagines some fellow like that in his little roman villa

content,

unaware that the barbarians are already past the gates and looting
and will be at his house within the hour

Cool, that means I can go out and get a brand spankin new car and future generations will have to pay for it

Originally posted by SilentKoala
Cool, that means I can go out and get a brand spankin new car and future generations will have to pay for it

Good Point !

Makes some sense, since we are already paying by holding GM stock in the U.S. Treasury.
(500 million shares I think)

reply to post by KireDj


GMAC took my families home.
While they were receiving $50 billion, or more, they were foreclosing faster than the law even allowed.
The fact that they received this infusion of cash from the taxpayers, myself included, allowed them to foreclose, rather than negotiate.

Had they not been bailed out, they would have had no choice but to negotiate with all the people they foreclosed on.

I, like many others, made some poor financial decisions.
GMAC made very bad financial decisions as well, only difference being,
they were to big to fail, I was not.

P.S. Ask me (as well as millions of others) how soon it will be until I purchase another GM automobile.
Hint hint: I drive a Tundra, my wife a 4 Runner.
F@@K GM!!!