Consumers spent more than they could afford to spend, and are now paying down that debt. There is little consumer appetite for increasing debt.
"Saving" GM and GMAC by allowing them to loosen credit requirements is like "saving" New Orleans during hurricane Katrina by pumping in more water - it is ridiculous.
Americans have too many big houses, too many cars, too many big TVs, and too much stuff. It can take years to use up the items we have "bought forward" with debt.
GMAC to loosen criteria for loans upon bail-out
By Bernard Simon in Toronto
GMAC, the financial services group part-owned by General Motors, on Tuesday said it would immediately loosen its criteria for vehicle loans in the wake of a two-step government bail-out.
“The actions of the federal government to support GMAC are having an immediate and meaningful effect on our ability to provide credit to automotive customers”, GMAC’s president Bill Muir said in a statement.
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