This morning I was doing my usual surfing and came across this…

GM dealers have complained that tighter financing terms have cost them sales in a U.S. auto market that has failed to deliver the strong recovery many had anticipated in 2010.

Subprime auto financing represents between 10 percent and 25 percent of auto loans depending on the market in the United States, according to dealers.

That form of financing for less credit-worthy borrowers is especially important for brands such as Chevrolet — GM’s mass-market brand and one of four that it has kept in the United States as part of its restructuring.
Source: Reuters

Now I’m not an economist but something tells me that if a potential car buyer is not qualifying for the standard financing terms at a bank, they should not be given a loan because…  well they probably can’t afford it.  GM’s logic is screw that, let’s buy our own financing company and lend these people money via sub prime loans!  Yes this will work out very well, you can tell GM management has the company’s future and well being in sight.

Anyone want to take bets on how long GM will stay afloat?  Too bad as an individual, I can’t short GM because it’s going to crash and burn!