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View Full Version : Are You Effing Kidding Me? GM to buy subprime lender.



malloc
07-27-2010, 04:13 PM
General Motors Co., the automaker 61 percent owned by the U.S., is buying subprime lender AmeriCredit Corp. for $3.5 billion to help it reach more customers with leases and loans to borrowers with faulty credit records.

The price of $24.50 a share is 24 percent more than Fort Worth, Texas-based AmeriCredit’s closing price yesterday of $19.70 a share in New York Stock Exchange composite trading. AmeriCredit rose to $23.91 at 4 p.m.

“This helps GM finance less-than-perfect-credit buyers and God knows there’s plenty of them today with economic conditions as they are,” said Joe Phillippi, principal of AutoTrends, a consulting firm in Short Hills, New Jersey. “A lot of people in the vast heartland of this country don’t have particularly great credit histories and that region has been the core of GM’s strength.”

GM had considered buying back its former lending arm, GMAC LLC, starting a bank or working with outside lenders to offer customers more financing options, three people with knowledge of the discussions said this month. Buying GMAC, now called Ally Financial Inc., or starting an in-house banking unit proved too difficult at that point, they said.

As long as GM is majority-owned by the U.S., it shouldn’t be in the subprime lending business, said John Berlau, a policy director at the Washington-based Competitive Enterprise Institute, which promotes limited government.

LINK (http://www.bloomberg.com/news/2010-07-22/gm-agrees-to-buy-lender-americredit-for-3-5-billion.html)



Government motors is buying up a subprime lender to ensure that people who can't afford cars are able to finance one! Has this administration learned, or whatever commission was put in charge on government motors on behalf of the taxpayers learned nothing?

I swear this is just to make sure GM moves as many cars as possible to keep union members employed, and spinning their wheels while taxpayers foot the bill for all the failed loans this is sure to create.

Molon Labe
07-27-2010, 04:27 PM
Yep...people have short memories about how great the bailout to these morons were. Incidentally, there's a "Praise Bush" thread going around here somewhere.

Articulate_Ape
07-27-2010, 04:28 PM
Government motors is buying up a subprime lender to ensure that people who can't afford cars are able to finance one! Has this administration learned, or whatever commission was put in charge on government motors on behalf of the taxpayers learned nothing?

I swear this is just to make sure GM moves as many cars as possible to keep union members employed, and spinning their wheels while taxpayers foot the bill for all the failed loans this is sure to create.

Meh, don't worry. AmeriCredit will just sell auto loan derivatives to Goldman Sachs who will bundle them into...

Wait a minute!

Constitutionally Speaking
07-27-2010, 06:53 PM
Government motors is buying up a subprime lender to ensure that people who can't afford cars are able to finance one! Has this administration learned, or whatever commission was put in charge on government motors on behalf of the taxpayers learned nothing?

I swear this is just to make sure GM moves as many cars as possible to keep union members employed, and spinning their wheels while taxpayers foot the bill for all the failed loans this is sure to create.


This is actually in response to another government mandate.


What is really aggravating is that the government is once again FORCING lending institutions to make loans to people who have no business receiving them.

Mike Honcho
07-29-2010, 01:22 PM
This is actually in response to another government mandate.


Can you educate me on how or why this is?

lacarnut
07-29-2010, 01:39 PM
Can you educate me on how or why this is?

When you get a job, we will educate your dumb ass.

Mike Honcho
07-29-2010, 01:54 PM
When you get a job, we will educate your dumb ass.

WTF? Why are you being a richard? I asked for an education not a smart a$$ answer. Your answer is typical of someone who has no answer

Zeus
07-29-2010, 02:36 PM
This way GM will be able to offer favorable deals to move new vehicles and make up any of the lose through financing. I would normally look at this as a good deal for some consumers except for the govt involvement.

m00
07-29-2010, 03:21 PM
Does the government own GM, or am I thinking of a different auto company?

Zeus
07-29-2010, 03:36 PM
Does the government own GM, or am I thinking of a different auto company?.................



General Motors Co., the automaker 61 percent owned by the U.S.,

m00
07-29-2010, 03:45 PM
.................

Yeah, I skimmed the article must have missed that. :p

At the next shareholder meeting, we should ask CEO Obama about it.