Bad credit?
No problem.
Following the failed financial policy oversight of the past by Congressional Committees headed by Democrats Barney Frank and Chris Dodd, where subprime mortgage lending was allowed to grow like hope and change on a cold November day and where by the spring thaw saw 25 subprime mortgage lenders collapse like a NAACP call to fire a government official, obama’s favorite car company, GM, has announced they will spend $3.5 billion of tax payer received bailout funds to purchase AmeriCredit so that they can get into the subprime auto loan lending business big time.
Despite living through the costly chaos caused by subprime mortgage lending, obama-selected GM CEO Eddie Whitacre said that giving auto loans to people who really cannot afford them will make GM more competitive(USA TODAY, 7/23/2010).
There are a lot of people chomping at the bit to buy a car built by obama-motors.
According to auto credit firm Experian Automotive, 40% of US car buyers are categorized as non-prime or subprime.
This is like Rent-A-Center on wheels; except that it is backed up by your tax dollars.
Will we see another government bailout of GM?
obama’s new financial overhaul policy excludes auto makers from the credit oversight that other financial institutions and credit lenders have to endure.
obama’s candidate to head the newly created government consumer credit watchdog division, Elizabeth Warren, who also doubles as the chairman of the congressional panel that oversees the TARP stimulus program, said that “over-priced credit products” and “risky subprime” loans are costly; “dangerous financial products” can wipe out savings, jobs, marriages, retirements, and lead to broken lives (NY Times, 7/24/2010).
Elizabeth, obama, and Whitacre need to have a talk. Timmy Geitner, obama’s chosen Treasury Secretary would not be invited – he and ‘liz don’t exactly exchange fist pumps.
Author, MBA, and personal finance and investing expert Lita Epstein wrote a piece for AOL’s money and finance site (Daily Finance, 12/1/2009) that told of the busy holiday season auto repo men throughout the country were enjoying in December of ’09.
CBS Evening News ran a story in March of last year that stated there is a “booming business for car repo men.”
The repo market is booming and the 60% US taxpayer owned GM (AP, 4/21/2010) would like to see even more people who cannot afford expensive car loans to have access to them.
In 2008, US News reported that “nationwide, repossessions are up about 15%”(http://usnews.rankingsandreviews.com/cars-trucks/daily-news /080307-120206/).
Suddenly our economy is in such great shape that we can once again peddle tax payer backed loans to risky borrowers?
obama gave GM nearl $7 BILLION of taxpayer money after the “failed policies of the past.” How many more, mr. president, how many more?
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