"The company's third-quarter financial report informed investors that "88 percent of the consumer finance receivables in North America were consumers with FICO scores less than 620."
WHOA!!! Three quarters of GM's consumer loans as of June are unlikely to ever pay for them!
You longs are going to wake up some day, screwed and tattooed.
"WHOA!!! Three quarters of GM's consumer loans as of June are unlikely to ever pay for them!"
As a long term investor, I'm not one to give a great deal of consideration to the day to day movements in stock prices, but if this revelation were even half true this stock would have absolutely cratered today. Yet, it's UP 5%! Why? Because this is nonsense! Return from Crazytown, Webby/Clown/Mullah/Robert - if you can!
((( if this revelation were even half true this stock would have absolutely cratered today.)))
Negative, negative, negative.
Even if it is 100% verifiable what fraction of GM investors would even understand the implications?
Not many of you dimbulbs, that's fo shizzle.
"WHOA!!! Three quarters of GM's consumer loans as of June are unlikely to ever pay for them!
You longs are going to wake up some day, screwed and tattooed."
So, WHO exactly, makes those loans? You think that they're ALL by GM's internal financing arm? LOL!!!!
So, really, how much RISK is there for the entity that is GM?
Even if customers don't make payments, WHO exactly loses? Why, it's the financial institutions, of course, who lent the money. Not necessarily GM. Further, who still owns the asset (vehicle) if the customer misses payments? The financial institution and not GM.
Meanwhile, GM has booked those revenues and claimed those sales. The only one who loses here are the original customer (who got it repossessed, doesn't have a car and a lowered credit rating) and potentially the bank (who can still sell the vehicle outright).
Again, for the umpteenth time today, you're an idiot.
"Again, for the umpteenth time today, you're an idiot"
wow, this is from a gm employee? screw the customer, the bank and ultimately the economy just to make a sale. sounds like a sustaining business model to me.
if this is the new gm, how has it changed from the old gm???
Then again those auto loans pay 10-18% interest rates .. so if 20% of them default after 3 years, your losses are pretty manageable, and it's probably worthwhile doing. It's not exactly disastrous or dangreous but definitely warrants some more research though..
Maybe not, but I acquired my shares in May 2009 and have been holding since then. I'm up (not as much as I would have liked) but I'm in no rush and will continue holding at least as long as the first set of warrants are still active.