Originally Posted by BradM

Think about it.

1. Banks go to government with this program idea knowing car manufacturers are hurting
2. Manufacturers say OMG plz do this we'll be rich!
3. Americans go OMG lets build more cars, I will get to work again, we'll be rich!
4. Banks give out loans to idiots who can't afford them
5. Within 6 months X% of people who bought these cars get them repo'd or voluntarily hand them over to the bank
6. Bank goes to auctions, sells cars
7. Banks go to government after they lose divisions due to car losses.
8. Banks get bailout money to cover the spread (which the books inflate)
9. Banks get rich
10. Everyone else gets fucked


So who are the patsys here? Government, Auto industry, and the consumer.

America is run by banks and this was a massive cash grab. In 5-11 months you will see steps 5+ on my list happen.