GMAC and the Billions!

The private sector determined long ago that there aren't many people they are willing to make loans to. This is especially true when it came to car loans. In my opinion, this is one of the biggest reasons why US car sales didn't just drop, they plummeted at unprecedented levels. You've seen the spreadsheets posted...all car companies fell but US companies took the cake. Chrysler and GM sales fell close to 50 percent month over month for the last couple quarters. So, based on this logic the government is loaning GMAC another 7.5 billion so they can make loans to potential car buyers. As if the original 6 billion wasn't enough.

"The investment includes $4 billion for GMAC to originate loans to Chrysler buyers and sellers, the Treasury said yesterday in a statement. The remaining $3.5 billion will help Detroit-based GMAC meet capital needs that resulted from the government stress tests. The Treasury said it expects to hold a 35.4 percent common equity interest in the company"

So after the private sector has determined that the loans are too risky to make...if they weren't they themselves would make them...the government will make them. And lets not forget that the government is playing with OUR money. When will we get fed up?