Posted by
Tom L. on Thursday, January 08, 2009 6:00:00 AM
The United States Treasury will purchase a $5 billion stake in GMAC and lend $1 billion to GM so GM can help with GMAC’s reorganization as a bank holding company.
According to The Liberal New York Times, “GMAC lowered its credit score for financing to 621, which is one point above what is generally considered a subprime loan.” The median credit score for Americans is in the 720-740 range.
GMAC has no plans to offer loans to those with credit ratings at 620 or below. Too risky, I guess – but 621 is okay. Well, you have to draw a line somewhere.
Strange though, two months ago before our tax dollars went to GMAC, GMAC set its loan level at 700.
GMAC lowered its requirements for loans so GM could sell more cards to people who may not be able to afford them.
So, buy a house you cannot afford and get a government bailout; then buy a car you cannot afford from a partially government owned company and no doubt when you cannot make the payments get a government bailout.
Sounds like the new American dream to me.