GMAC to get billions more taxpayer funds...

[LTC8K6]

GMAC asks for a third bailout...

I can't believe they are going to get billions more...

http://online.wsj.com/article/...html?mod=djemalertNEWS

In a stark reminder of how some battered financial firms remain dependent on government lifelines, GMAC Financial Services Inc. and the Treasury Department are in advanced talks to prop up the lender with its third helping of taxpayer money, people familiar with the matter said.

The U.S. government is likely to inject $2.8 billion to $5.6 billion of capital into the Detroit company, on top of the $12.5 billion that GMAC has received since December 2008, these people said. The latest infusion would come in the form of preferred stock. The government's 35.4% stake in the company could increase if existing shares eventually are converted into common equity.

The willingness by Treasury officials to deepen taxpayer exposure to GMAC reflects the troubled company's importance to the revival of the auto industry. Founded in 1919, GMAC has $181 billion in assets and is a major financier for 15 million borrowers and thousands of General Motors and Chrysler car dealerships.

The new capital would help firm up GMAC's balance sheet and solidify its auto-loan business. GMAC provides the vast majority of wholesale financing for GM dealerships across the country, meaning thousands would be unable to bring new vehicles onto their lots if GMAC were to collapse.

...

 

[LTC8K6]

Maybe they should just let US taxpayers borrow any GM or Chrysler car for a week since it seems like we have already paid for the cars...

 

[TruePaige]

They hold my title. 0.0

 

[IronWing]

Originally posted by: TruePaige
They hold my title. 0.0

Fess up; you're a billion or two behind in payments, right?


Edit: Thinking this through logically, wouldn't it make more sense to give the money to the deadbeats who aren't paying their loans with the stip that they must use the money to pay back the loans? GMAC gets the money in needs, the deadbeats get off the hook and can spend like idiots again thereby stimulating the economy, and the taxpayers are no more screwed than they are now.

 

[woodie1]

Originally posted by: ironwing

Originally posted by: TruePaige
They hold my title. 0.0

Fess up; you're a billion or two behind in payments, right?


Edit: Thinking this through logically, wouldn't it make more sense to give the money to the deadbeats who aren't paying their loans with the stip that they must use the money to pay back the loans? GMAC gets the money in needs, the deadbeats get off the hook and can spend like idiots again thereby stimulating the economy, and the taxpayers are no more screwed than they are now.

I think logic is frowned on around here.

 

[TruePaige]

Originally posted by: woodie1

Originally posted by: ironwing

Originally posted by: TruePaige
They hold my title. 0.0

Fess up; you're a billion or two behind in payments, right?


Edit: Thinking this through logically, wouldn't it make more sense to give the money to the deadbeats who aren't paying their loans with the stip that they must use the money to pay back the loans? GMAC gets the money in needs, the deadbeats get off the hook and can spend like idiots again thereby stimulating the economy, and the taxpayers are no more screwed than they are now.

I think logic is frowned on around here.

I figured since I didn't get any other government bailouts you lazy slackers could cover a billion or two for me. Pssh..

 

[woodie1]

Originally posted by: TruePaige

Originally posted by: woodie1

Originally posted by: ironwing

Originally posted by: TruePaige
They hold my title. 0.0

Fess up; you're a billion or two behind in payments, right?


Edit: Thinking this through logically, wouldn't it make more sense to give the money to the deadbeats who aren't paying their loans with the stip that they must use the money to pay back the loans? GMAC gets the money in needs, the deadbeats get off the hook and can spend like idiots again thereby stimulating the economy, and the taxpayers are no more screwed than they are now.

I think logic is frowned on around here.

I figured since I didn't get any other government bailouts you lazy slackers could cover a billion or two for me. Pssh..

For all the good some of this spending is doing we might as well give you some of it. Just remember to spend it so we can get people back to work.

 

[cubby1223]

Originally posted by: LTC8K6
GMAC asks for a third bailout...

I can't believe they are going to get billions more...

GM = union

Originally posted by: ironwing
Thinking this through logically, wouldn't it make more sense to give the money to the deadbeats who aren't paying their loans with the stip that they must use the money to pay back the loans? GMAC gets the money in needs, the deadbeats get off the hook and can spend like idiots again thereby stimulating the economy, and the taxpayers are no more screwed than they are now.

Giving to GMAC, they can pretend to be "loaning" the money.

 

[TruePaige]

Originally posted by: woodie1

Originally posted by: TruePaige

Originally posted by: woodie1

Originally posted by: ironwing

Originally posted by: TruePaige
They hold my title. 0.0

Fess up; you're a billion or two behind in payments, right?


Edit: Thinking this through logically, wouldn't it make more sense to give the money to the deadbeats who aren't paying their loans with the stip that they must use the money to pay back the loans? GMAC gets the money in needs, the deadbeats get off the hook and can spend like idiots again thereby stimulating the economy, and the taxpayers are no more screwed than they are now.

I think logic is frowned on around here.

I figured since I didn't get any other government bailouts you lazy slackers could cover a billion or two for me. Pssh..

For all the good some of this spending is doing we might as well give you some of it. Just remember to spend it so we can get people back to work.

Finally, a politician after my own heart. <3

 

[sandorski]

Originally posted by: ironwing

Originally posted by: TruePaige
They hold my title. 0.0

Fess up; you're a billion or two behind in payments, right?


Edit: Thinking this through logically, wouldn't it make more sense to give the money to the deadbeats who aren't paying their loans with the stip that they must use the money to pay back the loans? GMAC gets the money in needs, the deadbeats get off the hook and can spend like idiots again thereby stimulating the economy, and the taxpayers are no more screwed than they are now.

I don't know if Loan Delinquency is the problem here. It seems to simply be due to a lack of Volume of Sales. Gotta remember that Auto Loans have used low Interest Rates as incentives for many years, which would require high volume to make Profit.

 

[GroundedSailor]

Originally posted by: cubby1223

Originally posted by: LTC8K6
GMAC asks for a third bailout...

I can't believe they are going to get billions more...

GM = union

Originally posted by: ironwing
Thinking this through logically, wouldn't it make more sense to give the money to the deadbeats who aren't paying their loans with the stip that they must use the money to pay back the loans? GMAC gets the money in needs, the deadbeats get off the hook and can spend like idiots again thereby stimulating the economy, and the taxpayers are no more screwed than they are now.

Giving to GMAC, they can pretend to be "loaning" the money.

GMAC is a bank, not union. You're thinking of the car company.

Giving to deadbeats and propping up the bank is the same as giving money to AIG to prop up Goldman Sachs etc.

 

[TruePaige]

Originally posted by: sandorski

Originally posted by: ironwing

Originally posted by: TruePaige
They hold my title. 0.0

Fess up; you're a billion or two behind in payments, right?


Edit: Thinking this through logically, wouldn't it make more sense to give the money to the deadbeats who aren't paying their loans with the stip that they must use the money to pay back the loans? GMAC gets the money in needs, the deadbeats get off the hook and can spend like idiots again thereby stimulating the economy, and the taxpayers are no more screwed than they are now.

I don't know if Loan Delinquency is the problem here. It seems to simply be due to a lack of Volume of Sales. Gotta remember that Auto Loans have used low Interest Rates as incentives for many years, which would require high volume to make Profit.

You mean they aren't making a profit off my 0% interest loan!?!

 

[Ausm]

GM = union/q]


You mean piss poor management never played a factor?

 

[b0mbrman]

Originally posted by: ironwing

Originally posted by: TruePaige
They hold my title. 0.0

Fess up; you're a billion or two behind in payments, right?


Edit: Thinking this through logically, wouldn't it make more sense to give the money to the deadbeats who aren't paying their loans with the stip that they must use the money to pay back the loans? GMAC gets the money in needs, the deadbeats get off the hook and can spend like idiots again thereby stimulating the economy, and the taxpayers are no more screwed than they are now.

One would assume that GMAC would prefer to loan to non-deadbeats before they loan to deadbeats, right?

 

[TruePaige]

Originally posted by: b0mbrman

Originally posted by: ironwing

Originally posted by: TruePaige
They hold my title. 0.0

Fess up; you're a billion or two behind in payments, right?


Edit: Thinking this through logically, wouldn't it make more sense to give the money to the deadbeats who aren't paying their loans with the stip that they must use the money to pay back the loans? GMAC gets the money in needs, the deadbeats get off the hook and can spend like idiots again thereby stimulating the economy, and the taxpayers are no more screwed than they are now.

One would assume that GMAC would prefer to loan to non-deadbeats before they loan to deadbeats, right?

He's basically saying the funds should just pay off the loans of deadbeats so they can go buy more stuff and stimulate the economy while still bailing out GMAC.

Can non-deadbeats get in on that? Like can I have priority for not having missed any payments?

 

[IronWing]

Originally posted by: TruePaige

Can non-deadbeats get in on that? Like can I have priority for not having missed any payments?

No, if you're not part of the problem, you can't get a piece of the solution.

 

[Chunkee]

this will not be the last request/bailout from them.

it is not going to stop

 

[0marTheZealot]

Throwing good money after bad.

It's unfortunate that too many special interests, both sides of the aisle, in Washington want to see this bailout get passed.

 

[CPA]

Wait OP, you can't believe that a company owned 35% by the Feds is going to get more money? what did you think would happen?

 

[CPA]

Originally posted by: ironwing

Originally posted by: TruePaige
They hold my title. 0.0

Fess up; you're a billion or two behind in payments, right?


Edit: Thinking this through logically, wouldn't it make more sense to give the money to the deadbeats who aren't paying their loans with the stip that they must use the money to pay back the loans? GMAC gets the money in needs, the deadbeats get off the hook and can spend like idiots again thereby stimulating the economy, and the taxpayers are no more screwed than they are now.

Until the idiots trade in those vehicles for new ones with new loans that they will once again default on.

 

[sandorski]

Originally posted by: CPA

Originally posted by: ironwing

Originally posted by: TruePaige
They hold my title. 0.0

Fess up; you're a billion or two behind in payments, right?


Edit: Thinking this through logically, wouldn't it make more sense to give the money to the deadbeats who aren't paying their loans with the stip that they must use the money to pay back the loans? GMAC gets the money in needs, the deadbeats get off the hook and can spend like idiots again thereby stimulating the economy, and the taxpayers are no more screwed than they are now.

Until the idiots trade in those vehicles for new ones with new loans that they will once again default on.

Link to Default Rate?

 

[boomerang]

Originally posted by: Chunkee
this will not be the last request/bailout from them.

it is not going to stop

Makes the public opti ... err, excuse me, "consumer option" for health care sound really great doesn't it? When the consumer option runs out of money, guess who gets to bail it out? You've got it, the taxpayers.

It's so nice having the government look out for me.

 

[cubby1223]

Originally posted by: GroundedSailor

Originally posted by: cubby1223

Originally posted by: LTC8K6
GMAC asks for a third bailout...

I can't believe they are going to get billions more...

GM = union

GMAC is a bank, not union. You're thinking of the car company.

meh, close enough

GMAC = General Motors Acceptance Corporation

 

[cubby1223]

Originally posted by: Ausm

Originally posted by: cubby1223
GM = union

You mean piss poor management never played a factor?

Where did I say unions are the sole factor they're in the tank?

I'm saying unions are the reason why this administration wants to continue throwing money at them.

 

[sandorski]

Originally posted by: cubby1223

Originally posted by: Ausm

Originally posted by: cubby1223
GM = union

You mean piss poor management never played a factor?

Where did I say unions are the sole factor they're in the tank?

I'm saying unions are the reason why this administration wants to continue throwing money at them.

fail