Chrysler Offers 5 Year, No Finance Loans - Subsidized by You

And round and round the easy money carasoul we go... pulling money out of taxpayers futures to subsidize consumption today. What's under shell #1? shell #2? You don't know - because I keep moving them around... and we call it prosperity.

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Overheard in back halls of Chrysler car lot...

So we have this cool new deal on Chrysler cars - I know you can't afford it if there is 2 or 3% interest.  Those are crazy high rates and unAmerican.  So psst... I'm gonna cover you at 0%... for 5 years.  We need to clear this inventory and these are fire sale rates, I mean you can't go lower than 0%.  Well we could pay you interest but we're not to that stage yet.

Yeh, it's through this company called GMAC.  What's that?

Yes... GMAC is receiving taxpayer bailouts to keep propped up.

No of course it's not the same money that has been provided by tax payers.  Don't you know money is fungible?  This money came from a different drawer. 

No of course we are not creating false demand by using taxpayer money to subsidize easy money policies.  That's not what we're about.  We're here to help you.

Sigh.  

No it is NOT like what we are doing with Fannie Mae and Freddie Mac where we subsidize easy money policies to artifically support a housing market, while suffering losses on the back end that is filled by taxpayers dollars on a quarterly basis. 

How is it different? I don't know - it just is!

Now stop asking so many questions and just take... I'm sorry.. buy the car!  We only look at benefits here.  Costs are to be borne by others... and we don't talk about it.  Just make sure to pay your taxes. Because I need your money to help subsidize that guy 2 rows over on his 0% deal.  Wait, did I just say that out loud?

Via Bloomberg

• Chrysler LLC, seeking to shrink inventory while in bankruptcy, began offering five-year, no- interest loans on some models in its first effort to use new lender GMAC LLC for incentives.
• GMAC took over financing duties from Chrysler Financial as part of Chrysler’s government-backed bankruptcy filing on April 30.

• GMAC, the current lending arm for GM and Chrysler has gotten $13.5 billion in bailout funds. The lender recently took over Chrysler Financial's lending business, but a government stress test revealed GMAC did not have enough capital to withstand a worsening economy.
• To help GMAC raise the remaining capital, the Federal Deposit Insurance Corp. took the rare step of allowing the junk-rated company to gain access to its debt guarantee program. GMAC will be allowed to issue as much as $7.4 billion in FDIC-backed debt. The FDIC guarantees the debt that GMAC would issue in case the company defaulted on payment.

All backstopped, all the time.  Welcome to Cramerica.