A quick look at financial headlines this morning:
- GMAC is asking for more taxpayer money to help them out of their financial woes. This will be the THIRD bailout for GMAC, having received $12.5 billion dollars in the last 10 months. Their new request is for $2.8 to $5.6 billion dollars. It was in November of 2008 that GMAC announced plans to become a “bank” so they would qualify to eat at the Federal Government’s financial pig trough, and now they are coming back for thirds!
- While GMAC is likely to receive what they want, it appears that home buyers will be getting a kick in the head from Congress this week.
- Republicans in the Michigan Legislature are standing against democratic Governor Granholm’s tax and spend mentality. Granholm cut funding to schools last week in a manufactured attempt to get more pressure on Republicans to raise taxes. Michigan extended its budget by one month at the end of September. The next few days will be ugly in my state’s capitol.
- Speaking of Lansing, Michigan, foreclosures there are up 41% as compared to this time last year. It seems that foreclosures may be leveling off in some of the hardest hit areas, the increases now are rising dramatically in smaller metro areas.
OneMom
Sigh … and, of course, the answer will be that we’ve already committed so much to GMAC that we can’t let them go and lose all of it now.
I wish that I believed that these people at least had some sleepless nights over what they’re doing.
Hi Wickle – When GMAC decided to make themselves a “bank” a year ago so they could access the relief money, I had a bad feeling that they would become yet another welfare client, and here they are proving my fear. It’s disgusting.
Absolutely. I heard someone doing a comedy sketch of some bank listing their business plan to justify a bailout, and it was something like, “Well, we want $11 billion now, which should tide us over until March, when we hope for another $7 billion to get us to the summer. Then we’ll need $12 billion to get us through the summer and we’re hoping for another $10 billion in August …”
It sounded funnier before I realized that it was just about right.
But guess what happens if you can’t make your payment to GMAC? I’m guessing that they’re not so inclined to help you.
The parable of the servant who owed the king money comes to mind …
Wickle – yes, it isn’t so funny when it is absurdly real!
That parable is an excellent picture. Thanks for mentioning it.