The Obama - Clinton Disaster Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : The Obama - Clinton Disaster

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: DuckTapeSunroof who wrote (4202)	12/31/2008 2:56:29 PM
From: DuckTapeSunroof	Read Replies (2) of 103300

GMAC: Happy to Lend You Some of Your Own Money by: Tom Lindmark December 31, 2008 \| about stocks: F / GM / NSANY / TM seekingalpha.com If the shenanigans surrounding the GMAC conversion to a bank holding company haven’t gotten under your skin, then maybe this will. GMAC announced that it intends to significantly lower its lending standards in order to, in its own words “… (get) back in the game.” GMAC said that it intended to lower its minimum FICO requirement to 621 from 700 and late today indicated it would reintroduce 0% loans. This begs the question as to what the competition does in response. It’s unlikely that Toyota (TM), Nissan (NSANY) and all of the others are going to sit by and cede precious market share to General Motors (GM). At the same time they are hemorrhaging, so do their governments start pumping in money to keep them competitive? In the end does this just become a zero sum game that maybe pushes a few more units out the door at enormous cost? Once in motion, this process has nowhere to go but a rush to the bottom. Not for a minute will rational underwriting standards rule this process. It will be a contest to push money -- taxpayer money actually -- out the door in order to maintain some level of sales. GM won’t be alone, but it can claim the honor of being the first. More: here Note: If you were as confused as I was about the events surrounding the conversion of GMAC to a bank, the debt/equity swap and exactly what if any the Fed’s conditions were in terms of the bank holding company status then let me direct you to Felix Salmon’s late post Tuesday. He makes some excellent points. I will have my own but I need to think it all over first. At the very least it is duplicity at the highest levels of government.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next