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Michael Gracie

Coming soon to a theatre near you: General Motors bankruptcy #2

They just never learn…via the WSJ:

General Motors Co. said Thursday it will acquire auto-finance company AmeriCredit Corp. in a $3.5 billion deal aimed at increasing availability of vehicle loans and leases.

Good idea!

GM sees the acquisition as a way to drive up sales, which is critical as the company plans a return to the public stock markets as soon as this fall.

Starting to smell funny. Pump and dump?

Auto companies use finance arms to make credit available to boost sales of cars and trucks. Without a finance arm, GM has said it hasn’t been able to reach as many customers with subpar credit scores with lease deals and financing.

There we go…more subprime loans!

In summary the plan is to close the AmeriCredit deal, lend a bunch of money for auto purchases to people who really can’t pay the money back, then shove the resulting shit pile into the public markets.

Can you say Fannie and Freddie?

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