Subprime Auto Loans

[NolaMan]

Care to comment?

Yea, by that I mean they have not paid back "tens of billions" ($45 billion apparently) in bailout money and until we see how the IPO shapes up, that is a net loss for the taxpayer...

 

[Crunch]

Their entry into the sub-prime market is a business decision. If we don't want them to make business decisions, our government should have let them fold.

Our government should have let them fold because of their previous business decisions.

 

[Kushinator]

Yea, by that I mean they have not paid back "tens of billions" ($45 billion apparently) in bailout money and until we see how the IPO shapes up, that is a net loss for the taxpayer...

Losses are different than debt. While losses can be debt driven, not all debt is loss driven. Vocabulary is key in this regard.

 

[MaggieD]

Our government should have let them fold because of their previous business decisions.

You'll get no argument from me on that one.

 

[NolaMan]

Losses are different than debt. While losses can be debt driven, not all debt is loss driven. Vocabulary is key in this regard.

Their "debt" is basically a loss for the taxpayers at this point. Generally I would agree with you, but I think it is somewhat different with all the taxpayer money on the line.

There is a lot of speculation that their sales last quarter were only up because of sell offs to rental dealers etc... we will see if it keeps up. I hope they can pay the money back, but it remains to be seen, and I think it is better viewed as a loss currently.