Thursday, October 23, 2008

Everybody Wants Some



"Number nine? Number zero-nine? The Bailout Desk is now serving number nine, please."

And so the automakers belly up for a second helping, it seems:

NY Times: A Push for Bailout to Help Car Buyers

When someone first linked me to this story, I thought it was a joke. But it wasn't.

No, really. A bunch of lawmakers do want taxpayer money to be used to "restore liquidity" and help consumers buy new cars. This quote (from the drafted letter to the Treasury) is just precious:

In this current economic environment, it is imperative that the government ensures that liquidity is restored so that the U.S. auto industry is able to function until normalcy is restored to credit markets.


Well, let's see: As of last week, Reuters noted that GMAC had noosed its lending activities such that only consumers with credit scores of 700 or better would be able to finance through them.

Oh, and GMAC wants to see decent down payments, too.

And no refinancing of upside-down chunks of previous cars into new GMAC loans.

Obviously, such egregious and abnormal credit restrictions would indicate utter blasphemy: that GMAC might actually want to issue loans which have some moderate chance of being paid back.

Heavens to Betsy.

An auto-finance arm wanting to ensure its loans are paid back?

Outrage, I tell you.

The government simply must Do Something.

[/sarcasm]

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— Posted by Michael @ 9:27 AM








2 Comments:
 

Mike,
I'm really starting to worry about your blood pressure here. You should quit reading all this financial news :P

 

I'm just floored that these are Michigan legislators demanding a bailout of automakers. It's almost as if they had some special influence on them. Simply stunning.

Not.

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