lithgowk

The Lending Lunacy Continues as GMAC Gives Out More Bad Loans

NO ONE BUT THE GOVERNMENT WILL LOAN TO GM OR TO GMAC;
GM DEBT IS SELLING AT 50% OR LESS OF FACE VALUE; LOANING TO THE LOWEST RATED BUYERS WILL ASSURE CONTINUING DEFAULT STATUS TO THE VERY COMPANIES GOVT IS TRYING TO RESURRECT. THE EFFORT WILL BE DOOMED. IT SEEMS THE GOVT IS TAKING OVER THESE COMPANIES NOT TO SAVE THEM BUT IN AN EFFORT TO KEEP THE PLANTS OPEN AND THE FACTORIES RUNNING AND CUSTOMERS BUYING, REGARDLESS OF THE UNDERLYING FAULTS IN THE FINANCING. HOPEFULLY THE NEW ADMINISTRATION WILL HAVE A DIFFERENT AGENDA AND WISER CAPTAINS. THE PLANTS SHOULD RUN ONLY IF THERE IS A SOUND BUSINESS PLAN AND THE PLANTS SHOULD PRODUCE CARS AMERICA WANTS - EFFICIENT, AFFORDABLE AND WITH A LOW OR NO CARBON FOOTPRINT.