$5 billion given to GMAC Financial
GMAC Financing (GM’s financing arm) has been given $5 billion in addition to the already $17.5 billion given to GM in order for GM to sell vehicles. It was stated that GMAC had gotten tangled up in bad mortgage debt. Um, hello, what business did GMAC have in giving out HOME loans? I thought this company originated for the purpose of auto financing? If auto loan companies are sticking their hands into markets where they don’t belong, they deserve to get them slapped.
Again, here is another bailout that was unnecessary. Yes, I do understand that GM can’t sell cars without its financing arm. Again, who’s problem is this? GM needs to work through its issues itself. The citizens of the US do not need to be propping up these badly run organization through these bailouts. What business did GMAC have even issuing home loans? Yes, I realize they are a financing arm, but GM should have been keeping careful watch over them to prevent GMAC from offering loans on items other than cars or vehicles. Again, another company with no oversight that does not deserve a bailout, yet the government is handing them $5 billion. I understand the reasoning behind the money, but it doesn’t make the pill any less bitter to swallow.
Oh, and the worst part of all of these auto bailouts is that there is no guarantee they won’t go belly-up anyway. Giving the auto makers this money may all be completely pointless, but we the taxpayers will have to pay the price in the end no matter the outcome.