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GM On The Brink? Ramps Up Risky Subprime Auto Loans To 93% To Drive Sales While Stock Plummets

Schläue~© 2012/07/30 13:51:30



Is this the next bail-out on top of bail-out? Wasn't subprime lending the major cause of the housing market crash? 7 of every 10 GM vehicles are now manufactured outside the USA,....... who save what for who...... China? In order for taxpayers to break even, GM's stock would have to completely sell out at over $53 per share which is currently floundering at $22.

GMC

"President Obama has touted General Motors (GM) as a successful example of his administration's policies. Yet GM's recovery is built, at least in part, on the increasing use of subprime loans.

The Obama administration in 2009 bailed out GM to the tune of $50 billion as it went into a managed bankruptcy.

Potential borrowers of car loans are rated on FICO scores that range from 300 to 850. Anything under 660 is generally deemed subprime.

GM Financial auto loans to customers with FICO scores below 660 rose from 87% of total loans in Q4 2010 to 93% in Q1 2012."

http://news.investors.com/article/620090/201207271807/gm-risk...

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  • Vision of Verve 2012/07/30 22:28:23
  • Schläue~© Vision ... 2012/07/30 22:41:14
    Schläue~©
    He might want to take a peek at this video. This isn't some propaganda piece but straight from GM's CEO, Dan Akerson himself.
    He almost sounds proud that they're all but sold out to China already.
    What is to stop them from putting their own label on the vehicles and sell them around the world.... like they're doing now anyway?
    It will be extremely hard collecting any pensions after they fold.

    http://www.youtube.com/watch?...
  • Vision ... Schläue~© 2012/07/30 22:45:30
  • Schläue~© Vision ... 2012/08/01 00:39:36
    Schläue~©
    +1
    Just now saw this reply. I signed on and have 88 happenings. Most are 1 - 2 days old. Weird.
  • Vision ... Schläue~© 2012/08/01 00:46:25
  • Schläue~© Vision ... 2012/08/01 00:55:56
    Schläue~©
    +1
    Oh,... OK Miss poopular.
  • Vision ... Schläue~© 2012/08/01 00:58:05
  • Schläue~© Vision ... 2012/08/01 01:00:29
    Schläue~©
    +1
    Because I only had 88 and you have a gazillion-billion fufty million.
  • Vision ... Schläue~© 2012/08/01 01:03:38
  • 4570GOVT 2012/07/30 16:37:05
    4570GOVT
    +1
    G.M. ( GOVERNMENT MOTORS ) is Going For Broke ! They are doing EXACTLY what the government Forced The Banks To Do causing the housing market to crash and burn . When Will Our Government Ever Learn ? Our Government TOOK OVER G.M. - Paid Off The Unions Who Supported Obama - FIRED The CEO - Screwed The Owners / Shareholders - Decided That " THEY KNEW " How To Run A Business ............ IS ANYBODY SURPRISED BY THIS ?
    THEY are running GM into the ground , just like they did the COUNTRY !
    This Hurts . I Have Driven G.M. Cars & Trucks Since I First Learned To Drive . The Government Built The VOLT ......... A Car That Is " SUBSIDIZED BY THE TAXPAYERS " ! WE pay a VERY Large part of the cost and it still cost more than the average American would spend on a car . It ONLY gets 26 MILES per charge ( in electric mode ) . You have to charge it overnight ( AT WHAT COST TO YOUR ELECTRIC BILL ? ) . They CATCH FIRE ! ..................... Need I Say More ?

    MANY of the G.M. cars are now built OUT OF THE COUNTRY and the VOLT will soon be built in CHINA as well . They Can't Sell These Turds , and they SIT on the lot ,UNSOLD !

    NOW , back to the SUB-PRIME LOANS ................. Nobody Is Working ! The ONLY WAY they can sell cars is the same way they were forced to sell houses in t...

    G.M. ( GOVERNMENT MOTORS ) is Going For Broke ! They are doing EXACTLY what the government Forced The Banks To Do causing the housing market to crash and burn . When Will Our Government Ever Learn ? Our Government TOOK OVER G.M. - Paid Off The Unions Who Supported Obama - FIRED The CEO - Screwed The Owners / Shareholders - Decided That " THEY KNEW " How To Run A Business ............ IS ANYBODY SURPRISED BY THIS ?
    THEY are running GM into the ground , just like they did the COUNTRY !
    This Hurts . I Have Driven G.M. Cars & Trucks Since I First Learned To Drive . The Government Built The VOLT ......... A Car That Is " SUBSIDIZED BY THE TAXPAYERS " ! WE pay a VERY Large part of the cost and it still cost more than the average American would spend on a car . It ONLY gets 26 MILES per charge ( in electric mode ) . You have to charge it overnight ( AT WHAT COST TO YOUR ELECTRIC BILL ? ) . They CATCH FIRE ! ..................... Need I Say More ?

    MANY of the G.M. cars are now built OUT OF THE COUNTRY and the VOLT will soon be built in CHINA as well . They Can't Sell These Turds , and they SIT on the lot ,UNSOLD !

    NOW , back to the SUB-PRIME LOANS ................. Nobody Is Working ! The ONLY WAY they can sell cars is the same way they were forced to sell houses in the 90's ........... Sell To People Who Will Never Pay For Them ( just like houses ) . The BANK ( GMAC ) will have to EAT these REPO's and the TaxPayer is stuck with the bill !

    GREAT WORK MR. OBAMA !
    (more)
  • Matt 2012/07/30 14:34:16 (edited)
    Matt
    +1
    General Motors, U.S. operations is now a corporate pyramid scheme. They control the world's largest pension plan which is inevitably doomed to fail and be taken over by the PBGC. (government) No president wants this to happen on his watch and that is why we bailed them out.
    General Motors pyramid scheme
  • ProudProgressive 2012/07/30 14:30:34
    ProudProgressive
    Why do you take such joy in rooting against the American economy?
  • Schläue~© ProudPr... 2012/07/30 14:52:53 (edited)
    Schläue~©
    +1
    How is exposing the LIES of 0bozo & crew, rooting against America or the economy?
    Are you really that afraid to look at the cold- hard facts? The GM bail-out was a stand-up comedy routine and it still has yet to deliver the final punch-line.

    Just like the insolvency of Social Security, and Medicare, the progs opt for the head-in-sand solution, ignore that major problems exist and think putting Trillion dollar band-aids on hemorrhages is the answer to all that ails.

    When does that light finally come on in the attic and you understand that money doesn't even stick as well as spaghetti? It stays there for a few weeks or months while the sheep go Ooooo & Ahhhhh and 30 days later the jackass is on the tube asking for more.
  • ProudPr... Schläue~© 2012/07/30 15:10:23
    ProudProgressive
    There was no bailout of GM. It was a loan program and the loan has been paid back. And neither social security nor medicare are insolvent. Just tell the Republicans to stop raiding the trust fund and raise the cap on social security tax payments and they will continue to be solvent for the next hundred years.
  • Schläue~© ProudPr... 2012/07/30 15:57:08 (edited)
    Schläue~©
    You are truly delusional. $100 Trillion liability and you're still claiming all is well.... hilarious. Even Bernie Sanders recognizes it all falls apart within the next 20 years and that's optimistic at best.

    Spin it how you will. GM WAS a bailout which didn't force the union pigs to renegotiate their outrageous demands (what caused the whole problem to begin with) and GM used TARP $$$$ to pay off a portion of the bail-out. Peter - Paul syndrome with taxpayer $$$. They still owe over $24 BILLION which is why their lying ads were pulled a week after they aired, claiming they had paid America back.
  • Vision ... ProudPr... 2012/07/30 22:23:45
  • ZenerSix 2012/07/30 14:15:38
    ZenerSix
    +1
    Subprime auto loans have higher interest rates too, which increases the likelihood of default.
  • Wahvlvke 2012/07/30 14:05:02
    Wahvlvke
    +2
    Everyone needs to know that these continuing resolutions in lieu of budgets contain all the insane bail out and stimulus money. Taxpayers ... bend over and have plenty of K-Y jelly on hand. The only way to stop it is to shut down the government and the maggots will go crazy.
  • Kat ♪ ~BTO-t-BCRA-F~ ♪ 2012/07/30 14:00:00
    Kat ♪ ~BTO-t-BCRA-F~ ♪
    +4
    Obama lies again, the taxpayers are screwed again. Vote him out.

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