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Originally Posted by cavemantrader People who live in glass houses shouldn't throw stones!
GMAC has always been a big part of GM, and was frequently a larger contributor to the bottom line than the actual automobiles.
Ditech mortgage was a large part of GMAC during the housing boom times. Yep, GM caught the housing / mortgage boom, etc.
And maybe using 0% financing since October 2001 to force sales rather than reducing production was not the correct answer in the end. Did GM truly believe that a production rate of 16 or 17 million (for the U.S. market) was sustainable? |
#1- I don't work for GMAC, so I don't live in that "glass house"
#2- The Government has been pressuring and requiring Mortgage companies to give loans to people who can't afford them since the Clinton Administration, so it's not like lenders just up and decided to do it. GM also sold 51% of GMAC in April 2006, during the height of the housing boom- perhaps they saw this coming?
#3- The American public and the Government should have been kissing GM's collective butt after September 11th when they came out with the
"Keep America Rolling" program- 0% financing across the board. It was the first time an automaker had ever done something like it, and a large part of the reason we didn't dive into a recession in the weeks after 9/11. How much do you think it cost GM to do this? American buyers and the media returned the favor by continuing to buy foreign and lambaste GM at every chance they got.