Reuters: GMAC Angling for Low FICO Buyers Again
From the article:
The irony here is downright looking-glass-ish: A government with no money is borrowing money to loan to a company with no money, who in turn plans to loan that borrowed money to customers who have — wait for it — no money. (All based on the sale of quickly-depreciating assets, even.)
The fact that our economy now absolutely depends on a ramp-up and further pile-on of just this sort of self-defeating, debt-based consumption in order to not implode does, to me, speak volumes.
Not a day goes by that I, as a guy who's working hard to "do it right" financially, don't feel like I'm being slapped in the face.
I'm really, really tired of it. (And by the way, though I work for a GM-centric auto group, I will never purchase a GM-branded vehicle. Ever.)
While we're at it, let's talk Fannie and Freddie, too, via Bloomberg:
...The Obama administration and Congress have been leaning on the government-sponsored enterprises to help lower mortgage rates and loosen lending requirements even as the two suffer record losses on their existing mortgage investments.
When it gets to the point that even a moderate rise in interest rates brings the economy to a screeching halt (we hit that point long ago), and when the Powers That Be are forced to cram "easy credit" into all channels and manipulate credit markets at every turn just to keep the train on the tracks ... well, that's where we are.
There's a reason that all fiat currencies tend to crumble at some point — usually taking governments with them.
But I'm sure ours will buck the trend.