Taxpayers Financing Cars

Thanks to admitted tax cheat Tim Geithner (Treasury Secretary) bailing out GM's financial arm, the US taxpayers are providing financing for new cars and raise the financing amount on used cars.

This is going to be another taxpayer-financed disaster while the bankers continue to get paid.


(Reuters) - Ally Financial Inc, the United States' largest maker of car loans, hopes that people have forgotten the time when "subprime" became a synonym for "disaster."

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It has said it wants to raise the percentage of auto loans on used cars that it makes to 50 percent from its current 20 percent.
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Ally is the kind of company that "will likely need to call for the government's financial ambulance at some point in the future," said James Ellman, a hedge fund portfolio manager at Seacliff Capital in San Francisco. "I don't know if it is sooner, or later, but it will happen."
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The government's ambulance came for Ally three times during the financial crisis as Ally's book of subprime mortgages collapsed. Taxpayers injected more than $17 billion into the company, which had assets of $287 billion in 2006 before loan values collapsed.

Those bailouts left the government holding a 74 percent stake in Ally ...