"Relieved GMAC expands lending" by Bloomberg News | December 31, 2008
WASHINGTON - GMAC LLC, bolstered by a $6 billion federal bailout intended to help keep General Motors Corp. in business, expanded its lending program yesterday, resuming offers to GM buyers with credit scores below 700.
The Treasury Department said Monday it would take a $5 billion stake in Detroit-based GMAC and lend GM another $1 billion to invest in GMAC. Dealers have blamed a lack of customer financing for the automaker's 22 percent slide in sales this year, and within hours, GMAC had lowered the minimum acceptable credit score to 621.
Reviving GM's sales has become a priority for US policy makers because of concern the automaker and its suppliers might go bankrupt and deepen the recession by firing millions of workers. The funds for GMAC are on top of $13.4 billion the Treasury agreed to lend to GM and Chrysler LLC this month.
Just wondering why GM outsourced and offshored so much production then.
"The economy has stopped on a dime, and the Fed is looking anywhere there are large markets they can affect in big ways," said Greg Prost, chief investment officer at Ambassador Capital Management in Detroit. "If they are going to save the car companies, there is going to have to be financing."
The 700 score minimum, put in place two months ago, had excluded about 42 percent of US consumers. The relaxed policy "will allow us to return to more normal levels of financing volume, and should help in efforts to stabilize the US auto industry," GMAC president Bill Muir said in a statement yesterday....
Notice how none of YOUR TAXPAYER BAILOUT actually went to BAILING YOU OUT, America?
It all went into BANKERS' POCKETS or for LOANS that will CHARGE YOU INTEREST for BORROWING your OWN MONEY!!!!