From the Examiner story entitled “Obama and the ‘success’ of GM Bailout: It’s All A Lie:”
President Obama continues to tout the $50 billion bailout of General Motors (GM) as a successful example of his administration’s policies. However, according to David Hogberg’s Friday report for Investor’s Business Daily, financial reports reveal that GM is relying increasingly on subprime loans to boost sales.
Potential borrowers of car loans are rated on FICO scores that range from 300 to 850. Anything under 660 is generally deemed sub-prime. Customers who received GM loans with FICO scores below 660 rose from 87 percent in Q4 2010 to 93 percent in Q1 2012.
The worse the FICO score, the bigger the increase. From Q4 2010 to Q1 2012, GM Financial loans to customers with the worst FICO scores — below 540 — shot up 79 percent to more than $2.3 billion. The second worst category, 540-599, rose 28 percent from about $3.4 billion to $4.3 billion.
Please read the whole article to completely understand what Obama means when he touts the great success of this covert boost to his union thug friends.