GM to acquire Americredit Corp. for $3.5B

[Acanthus]

http://finance.yahoo.com/news/Gener...2.html?x=0&sec=topStories&pos=1&asset=&ccode=

Thoughts?

A bailed out company with a large government stake is buying a creditor to give out high risk loans... This does not seem like a wise business move in my eyes, especially when you are dealing with taxpayer losses if the business tanks.

 

[MotF Bane]

Why not? GM knows it won't be allowed to fail, so why are they going to care?

 

[bamacre]

Inefficient companies using government to buy up efficient businesses. That's gotta be good for our economy.

 

[BoberFett]

 

[boomerang]

Seeing as how the government is the largest stakeholder in GM, I'd venture a guess that the .gov gave its seal of approval to this. The government likes giving financing to people that can't afford it.

Barney and Chris are probably very proud.

 

[Exterous]

Seeing as how the government is the largest stakeholder in GM, I'd venture a guess that the .gov gave its seal of approval to this. The government likes giving financing to people that can't afford it.

Barney and Chris are probably very proud.

Actually, GM said it did not require approval - which I don't understand since the government ownes 61% of the company.

Let me get this straight though - GM ran GMAC into the ground with risky loan issues and had to sell it's controlling majority of the program. Now they are looking to buy a different company that has not been run into the ground so they can make loans to subprime borrowers??!!

Come on! I guess they learned it doesn't matter what they do since they will just be given handfuls of money by the government

 

[Acanthus]

Actually, GM said it did not require approval - which I don't understand since the government ownes 61% of the company.

Let me get this straight though - GM ran GMAC into the ground with risky loan issues and had to sell it's controlling majority of the program. Now they are looking to buy a different company that has not been run into the ground so they can make loans to subprime borrowers??!!

Come on! I guess they learned it doesn't matter what they do since they will just be given handfuls of money by the government

This does really seem like they are following the same high risk path they were on before the crisis.

 

[Fear No Evil]

Don't worry, the financial reform bill will prevent anything bad from happening.

 

[CPA]

GM pay off your damn loans first before investing in another high risk loan company. And when I say pay off your loans I don't mean use one pile of TARP money to pay off a TARP loan like you did 6 months ago.

 

[evident]

sigh, i personally hate gm, all their POS cars (i don't care how nice the cts-v or the corvette is, gm blows) but i think its in everybody's interest to see them on the road to recovery, i guess. chrysler should just go away.

 

[MikeMike]

This is a move of necessary evil...

GM can't get banks to do leasing competitive with other companies.
GM no longer has GMAC, Cerebus owns it, who used to own Chrysler, etc...

the whole auto financing sector is an insane place right now.

 

[GoPackGo]

This reminds me of GM and how they have and continue to operate:

http://www.youtube.com/watch?v=WJo0_llL1Q8

 

[child of wonder]

They need a financing company so they can get idiots like my sister in law to buy their shitty cars at 24% interest.

 

[boomerang]

They need a financing company so they can get idiots like my sister in law to buy their shitty cars at 24% interest.

24%?

I'd love to hear the story.

 

[werepossum]

If the purpose of GM were still to be a profitable private corporation, then this would make no sense. GM however is being repurposed into a government-backed wealth redistribution tool, so this makes perfect sense. Make a bunch of bad loans, give yourselves big bonuses, get heap big taxpayer-funded bailout, rinse and repeat.

 

[woolfe9999]

If the purpose of GM were still to be a profitable private corporation, then this would make no sense. GM however is being repurposed into a government-backed wealth redistribution tool, so this makes perfect sense. Make a bunch of bad loans, give yourselves big bonuses, get heap big taxpayer-funded bailout, rinse and repeat.

You've been saying that about the GM bailout for quite awhile. I assume you believe that the government will never actually be divested from GM, as that is an essential component of your argument that this was a socialist takeover of private industry rather than an emergency bailout. So can I assume that you will admit that you're wrong about this if or when the government gets out of GM? I'm hearing that this may occur by early next year, so I'm just wondering.

- wolf

 

[werepossum]

You've been saying that about the GM bailout for quite awhile. I assume you believe that the government will never actually be divested from GM, as that is an essential component of your argument that this was a socialist takeover of private industry rather than an emergency bailout. So can I assume that you will admit that you're wrong about this if or when the government gets out of GM? I'm hearing that this may occur by early next year, so I'm just wondering.

- wolf

Actually I believe that Obama will fill GM management with progressive supporters, structure GM to benefit from government programs for the "less fortunate" and actively support such programs, and then divest it. That way its new progressive overlords can make tons of cash, and when the policy once again fails there will be yet another taxpayer-funded bailout enforced at gun point. (And if you don't believe taxes are enforced at gun point ask Wesley Snipes - through the glass, please.) In order to make these corporations useful to the left they cannot be simply part of government, but must have the appearance of being in the private sector. Throw in a bunch of cash, let them raise more cash via stock sales, let them burn through the money, then retake it and shear the investors again. My point is not that Obama intends to make GM a permanent part of government, but rather a permanent part of the progressive movement.

 

[woolfe9999]

Actually I believe that Obama will fill GM management with progressive supporters, structure GM to benefit from government programs for the "less fortunate" and actively support such programs, and then divest it. That way its new progressive overlords can make tons of cash, and when the policy once again fails there will be yet another taxpayer-funded bailout enforced at gun point. (And if you don't believe taxes are enforced at gun point ask Wesley Snipes - through the glass, please.) In order to make these corporations useful to the left they cannot be simply part of government, but must have the appearance of being in the private sector. Throw in a bunch of cash, let them raise more cash via stock sales, let them burn through the money, then retake it and shear the investors again. My point is not that Obama intends to make GM a permanent part of government, but rather a permanent part of the progressive movement.

Ah, so what you're saying is that Obama will plant people in GM with secret commie agendas who will continue to do the government's bidding even after the government has no ownership? And of course, he will count on the private shareholders to let these "progressives" run the company into the ground, even though the private shareholders, whose only interest is profit, will have total control of who does and does not serve as officers and directors of the corporation. Hard to argue with you when you're spinning hypothetical theories like this, but this one doesn't even have much internal logic.

One thing is clear though: you've insulated yourself from ever having to admit you were wrong, since even after the government is out of GM, the secret progressives are presumed to still be there, and the next collapse and bailout, like the apocalypse, is always just around the corner.

- wolf