Times when Japanese automakers competed with Americans are over, now are the time American automakers should concentrate on competing with Japanese. I rather see that money going toward restructuring manufacturing, producing less variety, but good quality cars that American’s and all others all over the World would like to bye and drive. Giving risky loans in order to sell more junk will not change anything long run, It will only extend the agony.

The problem, according to the popular press, with the TARP funds given to banks is they are NOT lending, which defeats the purpose of TARP (unfreeze credit markets).  Here is an outfit that is trying to take that money and lend.  Nobody is ever happy.  

Well thank god somebody has loosened their purse-strings and isn't hording TARP funding to cushion their personal cache meanwhile having the rest of the suckers referring to that by its new catch-phrase "credit-freeze".  Pleeeaase. It took no time for the good folks at GMAC to figure it out: Funding in - Lending out. Their putting "our tax-dollars"  to practical use. No over analyzing something so simplistic.  You can keep waiting for the trickle down affect to get to you - but I don't think the banks are done siphoning your tax billions yet !! My bet is on GMAC; and a resounding NO, this is not quite what got us in this financial mess in the first place - you might want to take a stroll to 11-21 Wall Street, for starters.

Thanks to GMAC we have now a bank that cares about their customers. The housing problem came from greedy loan companies that wanted to make a fast buck off good honest people. Yes sure, they gave out loans like candy, but loan companies keep raising the interest rates thus sometimes doubling monthly payments. It was a trap with fine print and misleading information that loan companies like Countrywide screwed USA. Now these same banks want welfare money from the poor to pay their greedy intentions. I hope banks like Countrywide get all they deserve from God. So GMAC thanks, I say yes your company is getting our help, but your bank is trying to resolve the problems that banks like Countrywide screwed customers in the first place that got US in this mess.

Now, if other lenders will follow suit and loan money to qualified buyers at reasonable rates we could get this economy moving again. But, unfortunately, many are hoping they will be able to pad their balance sheets to make their shareholders happy and stash bonus money away for the top tier executives. I don't here much yet from the FED about when they expect the credit freeze to begin thawing. Do You?

Lets all buy some fine GM SUVs and not make the payments.

Thats what I would do if I was about to lose my house.

Nice reclining seats and a good stereo.

Then hit the road and see if they could find me.

The conflict of interest that exists when a car manufacturer has control over its finance company is always bad. Having been C.E.O. of a bank which specialized in auto lending through the dealers, I know full well the problems this creates, not only for the "captive" finance company, but the banks who are trying to compete for the auto dealer's business. It becomes a contest to see which lending source can liberalize its lending standards the most. The dealers couldn't care less if a lender goes belly up....there will be another one soon knocking on the dealer's door for business. Auto lending of this type is extremely risky for banks, especially for those inexperienced in dealing with the pitfalls (misrepresented loans, fraud, etc.). For the GMAC's and Ford Motor Credits and Chrysler Credits of the world, it's worse, because refusing a loan potentially means that a car sale will fall through. Alternatively, approving a loan to an unqualified applicant means that a repossession (and subsequent financial loss) is likely.

The main problem is that GM is lending money with less than normal credit ratings.  720 is considered average www.fool.com/.../check01.htm and this is  99 points lower than that. They are already being bailed out, do you want to bail them out again?

I'm out in the public's homes every work day of my life. Have customers of every income level and not many things are universally common with all--but here's a new one that is. NO BODY WANTS MORE DEBT-AT ANY PRICE!!!!!!!!!!!!!!!!!!!!!

They just don't get it up there in Washhington or Detroit or Wall Street. America seems done with the idea of borrow,borrow,borrow. Where has all the money

(our great- grandchildren's future tax dollars)  gone???

The Good old USA economy is moving further south in the red with the future generations picking up the tab made by our leaders, congress. I am totally confused that the government wants us to save but then wants us to spend, spend and spend. With unemployment numbers reaching record numbers, individuals and families can not save if one does not have a job. Let not talk about spending and expanding the economy. Americans can not trust government anymore! As a former union member, we need to reform how the union is taking us down a path that will put the future of americans in more danger. this with contracts , benefits and how the union leaders are being compensated !

Subprime car loans are nothing more than subprime mortgages. The worst part of an auto loan, the car depreciates 1/3 when you drive off the showroom. With a home, it does not drop 1/3 in value right away?  

god bless the United Socialist of America.