U.S. Treasury Secretary: GMAC Needs Less Money Than We Thought
“We’re likely to have to put in less capital [to GMAC] than we expected,” U.S. Treasury Secretary Tim Geithner told the House of Representatives Financial Services Committee earlier today. Which raises six major questions. First, huh? GMAC has already received not one but two direct injections of federal taxpayer assistance. Why are we arguing over amounts rather than the question of whether or not we should draw a line under the fetid financier and call it quits? Second, when did Geithner’s mob/GMAC figure out that $12.5 billion wouldn’t be enough to keep the lame-ass lender afloat? Third, why hasn’t anyone been called on to the carpet (i.e. shit-canned) for underestimating the federal teat provision needed to prop-up these sub-prime pricks? Fourth, how much taxpayer money did U.S. Treasury Secretary think GMAC would need to stay afloat—you know; before he figured out that the meshugganah money men didn’t need quite so much? Fifth, how much new capital does GMAC need anyway? And sixth, why should we believe we will ever get this money back? Which brings us back to d’oh. “The only thing we’re doing is making sure we follow through on that commitment,” Geithner testified. Or, as the Brits would say, in for a penny, what’s yours is mine.
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Mtymsi I'd underline SaturnV's comments that GMAC is not at all necessary for the viability of either GM or Chrysler. Other Car Co's do perfectly well without GMAC, in fact they're doing miles better (see Hyundai and whoever is their preferred provider). We're not bailing out GMAC a car finance anyway. We're bailing out Cerberus who through GMAC signed off their tragic escapade into sub-prime mortgages. In fact they've just been fined over here in the UK by the FSA for mis-selling. You Yanks are probably paying out for that fine too!!!!
You dare mock Tim "the Claw" Geithner?
How do you estimate 12 billion anything? I can't get 3 realtors to estimate my house to within 10%. Same with a used car (not estimated by realtors though). Just imagine the comments from the peanut gallery if the estimate was too low!
I still find it amazing this tax cheat is Treasury Secretary.