New Improved Subprime!

Now that many Americans are living in their cars after losing their unaffordable houses, GM and GMAC are now providing unaffordable loans for their obsolete stock:

Through January 5, GM will offer zero percent to 4.9 percent financing on loans of up to five years on some 2008 model-year vehicles, and 3.9 to 5.9 percent on some 2009 vehicles. Many of the vehicles also carry cash discounts of $500 to $4,250.

GMAC, meanwhile, will extend loans to retail buyers with credit scores, known as FICO, of 621 or higher. In October, it had restricted loans to borrowers with scores of 700 or higher. Many analysts consider borrowers with credit scores of 620 or lower to be "subprime." The median U.S. credit score is 723, according to Fair Isaac Corp's myFICO unit.

OK, it's a smaller market in some respects to the housing meltdown. But with the US government picking up the tab one way or another, there's Fool's Gold to be had. It's madness like this that puts me off writing a Balls to 2009 post. The worst case scenario keeps getting worse.