Hey, he warned us. When the president announced Chrysler’s C11, he mentioned in passing that the feds would provide GMAC with “fresh funds” to take over ChryCo dealer and retail financing (from Chrysler Finance). Well, Uncle Sam’s gonna need to back-up a dump truck to git ‘er done. Bloomberg reports that the former lender (now bank) will require an $11 billion “top up” just to not go tits up. That’s after a last-minute, rule-changing $5 billion infusion (plus $1 billion bestowed upon GM to help them help GMAC). And before The Presidential Task Force on Autos figures out how much more money GMAC needs to finance customer purchases and keep Chrysler dealers solvent. Ah, but do they want to avoid dealer death? As we’ve reported previously, GMAC has been busy pulling financing from selected GM dealers—an end run around GM’s franchise agreements designed to avoid the threat of dealer lawsuits against the mothership for termination. Can we expect the same for Chrysler dealers? Already happening.
“Atlas Shrugged” comes to life.
The UAW payback continues.
Fire up the money printing presses.
Is there anybody actually thinks this New Chrysler deal will be a success?
(not counting the success of the UAW at extorting money from the taxpayer)
FU. KING. SHIT. It just keeps getting deeper. Would it have just been cheaper to shut it all down and pay the people that lose their jobs perpetual unemployment? Where can I move when this whole country’s economy goes TU?
// FU. KING. SHIT. It just keeps getting deeper. Would it have just been cheaper to shut it all down and pay the people that lose their jobs perpetual unemployment? //
I think you’re right. A proper shutdown + welfare for the affected would have at least had a measurable price tag.
// Where can I move when this whole country’s economy goes TU? //
I hear Texas is talking secession… guess I’d better move there before they seal off the borders.
I remember when a billion dollars was a lot of money.
Any chance the Feds can siphon off a few hundred bucks to buy me a case of Crown Royal so I can numb the pain of watching this fiasco unfold?
Chrysler started this a while back, a huge dealership near here went under when Chrysler pulled their financing (back when the word was “oh, no, we won’t go bankrupt, no way!”
I’m thinking the dump truck full of my tax dollars had better have a Hemi. And a Ram Box. Just sayin’
And there’s zero chance that anyone from the administration or congress will say “oh !@#$, this is much worse than we thought, we have to stop this now.” In order to save political face and keep the union votes in line they will shovel more and more and more money down this hole.
Probably time to stock up on MREs, guns, and ammo.
Samuel,
Come on down! Texas is a great state. The talk of secession just proves our Governor is an idiot. Sadly, Texas isn’t alone in being able to make this claim.
Tex
Millions. Billions. Zillions. The government’s got printing presses, doesn’t it? No worries!
BTW, is that L. Ron Hubbard in the photo?
I hear Texas is talking secession… guess I’d better move there before they seal off the borders.
Already there. I’m in the DFW area, and with a large part of our local economy based on GM’s well being (Arlington Assembly), we’re going to take it in the shorts sooner or later. Secession or not. Although maybe if the Arlington plant goes down we can convince Toyota to build Sequoias here to take up the demand.
Which president was it that agreed to break all of the rules and make GMAC a bank?
Here is a hint… It happend on Christmas eve 2008… The money was basically p!ssed away then… not now.
“Which president was it that agreed to break all of the rules and make GMAC a bank?
Here is a hint… It happend on Christmas eve 2008… The money was basically p!ssed away then… not now.”
Uh, no. Obama is the current president, and has signed off on giving, err, loaning… no, giving money to GM, Chrysler, Cerberus, GMAC, etc.
Yes, El Presidente Bush got the ball rolling, and rather than showing a break from the past, Obama has chosen instead to spin the wheel faster.
Obama and Bush both suck, but saying this is Bush’s fault ignores that he hasn’t been president during the vast majority of the automotive teet sucking.
Stop thinking like a donkey… it’s bad for you.
The goal is NOT to avoid spending money. The goal IS to spend as much they can as fast as they can to devalue the currency.
Think of what GM is doing with the reverse split.. Now do that to the US Dollar.
The Fiat deal is silly if you assume the US government will walk away. Chrysler would be bankrupt in 6 months without another infusion. Chrysler and GM will receive infusion after infusion of government cash for years to come, maybe decades.
GMAC screwed over my local GM/Toyota/Chrysler dealer last December, dumping 82 employees and stranding thousands of customers who now have to go one hour away for warranty and service work. Then GMAC gets bailed out.
Still, they tell our dealer owner they will step back in if he can raise $2 million in new capital (couldn’t do it). DO you think they could take a haircut on the new $10 million dollar facility they financed to help the owner get through the bad economy? Of course not. It doesn’t matter that these dealerships were the biggest fleet sellers for GM and CHrysler and later, TOyota?
The nitwits who run GMAC got their asses saved by the taxpayers, but when they are asked to help the only GM and Chrysler dealer who has delivered the goods for them, not a damn thing. So you what? I am not buying GM cars anymore and I am sure as hell won’t use GMAC ever again, either.
Yes, former President Bush started this bailout crap, but President Obama needs to tell GMAC and all the other financial institutions who failed the stress test to raise their own capital. This taxpayer (and now former) GM buyer has had enough of bailing out the institutions who caused all of this economic mess.
And GMAC is at the top of my shit list list. They all need to go bankrupt if they can’t function without taxpayer dollars. THe bailouts need to stop. YESTERDAY!
@ amadorgmowner
The bailouts won’t stop until Washington runs out of money. Every bailout gives them more and more power to control things.
DC won’t run out of money until we have rampant inflation.
Imagine $10 a gallon gas, but your house is worthless because everyone is paying $250 per fill-up.
The federal government can’t even get a train wreck right. They need to make it spectacular and attempt to make money off the show. Here in Texas we know how to stage a train wreck!
http://www.texasalmanac.com/history/highlights/crash/
http://en.wikipedia.org/wiki/Crush,_Texas
And which one of the President’s involved followed the fiscally conservative ideology? Neither.
Just wanted that one on the record. I don’t always go with the conservative line, but when it comes to government spending it seems to be right most of the time.
Can I declare myself a bank and get a few million over here?
jkross22: Yes, El Presidente Bush got the ball rolling, and rather than showing a break from the past, Obama has chosen instead to spin the wheel faster.
It’s amazing how “hope and change” has really turned out to mean, “more of the same, only with a president who is more articulate and has better abs.”
And how many of the posters defending President Obama’s actions would be squawking about “corporate welfare” if a Republican president did this?
If nothing else, the last few months have been somewhat amusing, at least for those of us who actually take the time to remember what the candidates were saying during the 2008 campaign.
For as long as I live these bloated American welfare queens will NEVER seen a penny of my money other than what the I.R.S. takes for them.