If at first you don't bring down the Economy, try again? Lets keep giving money to people, who we still know, will never be able to pay it back. unreal. Apr 02, 2009 04:30 AM GMAC Financial Services says it will lower vehicle financing costs and resume making loans to subprime borrowers, part of a series of moves that could stimulate sales at General Motors Corp. The finance company said yesterday the moves are expected to make at least $5 billion (U.S.) of credit available to customers over the next 60 days. GMAC also eased a variety of fees and payments imposed on dealers, giving them more breathing room to lower both costs and inventory of unsold vehicles. The moves come as GM races to craft a restructuring plan acceptable to the U.S. government as a condition for obtaining more taxpayer funds. On Tuesday, new GM CEO Fritz Henderson said the automaker could go bankrupt by June 1 if it cannot devise such a plan. GMAC also said it will cut borrowing costs for some new and used vehicle purchases.
That's great. Forget making loans based on an asset that has a chance of improving in value, let's secure it with a depreciating asset and make sure the borrowers are unemployed deadbeats. What's the worst that can happen? Everything goes in the toilet and they just drive up to DC to "borrow" more money. GMAC is too big to fail, right?
lol! Again??? didn't they just lower it from 620 to 550 or something?? How low can you go? Once buyers default, Obama'll just print up another batch of money to pay it off. But seriously, I guess GAMC's bonds must have taken a hit over this?
Hmm... 5 billion is the amount GMAC got from TARP. 60 days is the the amount of time GM has to present the new plan for viability. Coincidence?