Posted on 05/21/2009 8:30:46 PM PDT by Justaham
The Fed and the FDIC have waived lending and borrowing rules for GMAC in order to ease consumer borrowing for GM and Chrysler cars, and the Washington Post doesn't seem to find anything unusual about this:
The Federal Deposit Insurance Corp. granted a rare approval to a program that will allow GMAC to raise money cheaply and take on lending for Chrysler. The Federal Reserve had to waive a rule separating banking and commerce that would have prevented GMAC, which just became a bank holding company, from lending to GM customers because the auto maker is a major shareholder in GMAC.
(Excerpt) Read more at newsbusters.org ...
It’s now so bad, this stuff is is looked upon as barely newsworthy.
So who has standing to take this to court?
The effect of the financing incentives GM & Chrysler will be able to offer will be a very tough obstacle for Ford to compete with, going forward. One might even conclude that bringing Ford under gov’t control is an ultimate aim. It’s quite possible that foreign mfrs will begin to protest these subsidies. But we live in an increasingly government mafia-dominated economy and there’s not much one can do.
Still, the GM and Chrysler brands are such that I’d bet well over 50% of US citizens will never “voluntarily” buy another car from these cos.
Would people “buy” GM and Chrysler products even if given 0% financing? I’m thinking not because they have had 0% financing and very loose lending rules. Didn’t help then and won’t help now.
I believe it won’t be getting any better because the people that know how to design and manufacture cars will be let go or voluntarily leave.
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