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GMAC to resume Subprime loans

Old 04-03-2009, 09:50 AM
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Default GMAC to resume Subprime loans

http://www.thestreet.com/story/10480...cm_ven=GOOGLEN

Are you kidding me? We, the taxpayers, who were just shafted because the government gave billions of our tax dollars to GMAC because they got in trouble making subprime loans now have to sit back and watch as they use our bailout money to make new subprime loans?

What is going on here?
Old 04-03-2009, 11:05 AM
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gf
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It was posted on 4/1 Joe, maybe it's somebody's idea of an April Fool's joke?

GMAC must be crazy, anybody with a credit score under 620 should not be buying a new car.
Old 04-03-2009, 11:08 AM
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Most people that have good credit are smart enough to realize that buying a new car is not the smartest thing to do in this time of job uncertainity. The people with bad credit, well lets just say they might be willing to spring for a new car if they can find a finance company (GMAC) stupid enough to give em a loan.
Old 04-03-2009, 11:16 AM
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Originally Posted by gf View Post
It was posted on 4/1 Joe, maybe it's somebody's idea of an April Fool's joke?

GMAC must be crazy, anybody with a credit score under 620 should not be buying a new car.
Gordo- that's what I thought but it's from a legit source AND there was not a disclaimer saying "april fools"

Corroborating sources:

http://money.cnn.com/2009/04/01/news...ion=2009040112

http://www.leftlanenews.com/gmac-to-...e-lending.html

Follow the money trail: You make money at work, it get's taxed, the government sends your tax money to GMAC, a subprime deadbeat goes and buys a new escalade with their crappy credit, the deadbeat defaults on the note, the government bails out GMAC, the government bails out the deadbeat who gets to keep his new escalade.

Now I get it.
Old 04-03-2009, 12:36 PM
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while I agree with you on the home mtg front, I'm not sure if the same risk/asset impairment issues apply with the sub-prime auto loans. One of the biggest issues causing the collapse of domestic car sales in the past 6 months has been the credit access for car loans/leases drying up. Given that in most cases the outcome of a defaulted auto loan is the auction of a car at a price that is probably above GM's actual build cost (but loss of all margin GM orignally received on its sale), im not sure the auto subprime has anywhere the same risk and impact as does the housing (since there were no govt agency requirements that "every douchebag (um, i mean citizen) deserves to own a CAR....."

The interesting thing to see would be car default vs house default......i bet there are a lot of guys out there that would walk away from the townhouse mortgage before they would give up their pimped out escalade Just drive thru any innnercit neighborhood / project and compare the condition of the homes to the conditions of the cars.....for my $$, im putting it into subprime auto loans before subprime home mtgs!!!

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