I think this is the key to the article and spot on...
Quote:
None of the jabbering jabberwockies out there want to touch the third rail -- the real issue, the Thing Behind it All. And that is the fact that millions of people no longer have inflated home equity lines to tap, but do have a pocket full of maxed out credit cards, 40 percent less in their 401ks -- and are scared white that their job (if the still have a job) will be outsourced or right-sized or otherwise disappeared in the very near future -- probably funded by their own tax dollars.
So, signing up for a $30k car loan is not high on most people's agendas right now.
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The problem really isn't GM it's the market is dried up. GM would be fine right now if the market didn't all but disappear. The problem is that they weren't healthy enough to weather the onslaught. Ford got lucky and borrowed tons of money last summer. It's almost like they knew all this was coming.