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