GMAC Begins Loaning To People With Poor Credit (Again)

Today's papers have several reports about the financing arm of General Motors which is called GMAC (General Motors Acceptance Corp). GMAC is the part of GM that loans you the money so that you can purchase their low quality, poor gas mileage behemoths with no money down, and a loan where you will still be making monthly payments more than 4 or 5 years from now. And until the loan is paid off you are required to keep full coverage insurance, rather than just liability insurance.

The American taxpayers have bailed GMAC out. To the tune of $6 billion. It seems that GMAC had suffered too many losses because they had loaned a lot of money to people with bad credit ratings who couldn’t pay the money back.

But now, thanks to a big cash infusion from the Federal Government and the U.S. Taxpayer, General Motors can go back to loaning large amounts of money to people with very poor credit ratings. People who are more likely to default on the loans.

So if you still dream of owning one of those enormous hogs which GM makes, the ones which get abysmal fuel economy, then run right down to your local GM dealer. They are desperate to unload these hogs, and they are looking for fools like you. Until you actually sign the papers to buy that big smelly lemon, the salespeople will kiss your ass real good.
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Is this really the kind of reform that is needed to get the American economy healthy again?
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