Unlimited Money
Apparently the trek has begun. The bailout of all things financial and all things auto was not a one-time deal. it will prove to be a life long committment. A marriage of government and business. There will be no divorce, only a "till death do us part" committment to spend taxpayer money to save GM, Chrysler, and GMAC.
GMAC has convinced the government that they need more money - Billions more - to keep from drying up the lending pool. Apparently the government is sleeping since they have no understanding that this has already happened. Dealer contacts I have spoken with tell me there is no money to be had right now. Consumer purchases require nearly perfect credit and recent spotless payment history to even be considered for loans. Most dealers are heading for local lenders to conduct most of their business and GMAC is primarily only used for business financing by the dealers.
The bottom line is, the lender can stop lending, they now have a direct line into the pockets of the American taxpayer. Their need to make money is no longer for their own survival. Much like our favorite uncles Sam, GMAC can now rely on the apathy of the people to support the bottom line of a once powerful corporation.
GMAC has convinced the government that they need more money - Billions more - to keep from drying up the lending pool. Apparently the government is sleeping since they have no understanding that this has already happened. Dealer contacts I have spoken with tell me there is no money to be had right now. Consumer purchases require nearly perfect credit and recent spotless payment history to even be considered for loans. Most dealers are heading for local lenders to conduct most of their business and GMAC is primarily only used for business financing by the dealers.
The bottom line is, the lender can stop lending, they now have a direct line into the pockets of the American taxpayer. Their need to make money is no longer for their own survival. Much like our favorite uncles Sam, GMAC can now rely on the apathy of the people to support the bottom line of a once powerful corporation.
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