Local car dealers excited by Federal bailout of GMAC

Posted by Mike Sylvester - 1/5/09 @ 8:26 pm - Filed Under Featured, Local Politics, National Politics

GMAC mostly handles car loans for GM. 

Due to the “credit crisis” GMAC tightened their lending standards over the last couple of months so that you could only finance a new car if your credit score was 700 or higher.  Note that 58% of Americans have a credit score of 700 or higher.

The Federal Government got involved and used six billion dollars from the TARP program to bailout GMAC.  GMAC is now extnding new car loans to Americans with credit scores of 621 or higher.  This expands the percentage of Americans who would qualify from 58% to 79%. 

Much of the downturn we have experienced is due to loosened lending standards.  In its infinite wisdom the Government is giving GMAC money so they will lower their lending standards.

Why are the inmates running the asylum in Washington DC?

Please speak up if you think the Government should have given GMAC money so they would lower their lending standards.

Mike Sylvester

Comments

4 Responses to “Local car dealers excited by Federal bailout of GMAC”

  1. John Colgate on January 7th, 2009 8:43 am

    Question:”Why are the inmates running the asylum in Washington DC?”

    Answer: See blog on Minnasota senate race!

  2. Tim Zank on January 7th, 2009 4:04 pm

    Mike, why on Earth would you expect things to change?

    We’re gonna do the same thing all over again. Personal responsibility is soooo 20th century.

  3. Bobett on January 9th, 2009 2:24 am

    In the long run, folks that have a great credit score, will allow folks to buy what they need, when they need it. They have savings to buy their goods and a job to pay for their daily needs.

    Now, to the folks that have little buying power…so sorry, your savings power does not allow you to buy on credit into the future.
    The credit days of borrowing are long over, unless
    you can purchase on real time.

    It’s time to PAY NOW. PAYGO.

    If we could get Congress & Senate to get on board !

  4. Evert Mol on January 9th, 2009 3:50 pm

    Borrowing more to ease or postpone immediate pain is the politician’s way of delaying the accounting for years of living on borrowed money. I don’t have kids, so passing the burden on to the next generation doesn’t bother me. Hopefully when the bill finally comes due I’ll be dead or senile.

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