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GMAC is the definition of a black hole

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October 28, 2009 – Comments (1)

GMAC has become the definition of a black hole, where government money goes in and just disappears over, and over, and over again.  This company...or whatever it is because it's sort of affiliated with General Motors, but not really, sort of affiliated with Cerberus (or at least it used to be), sort of affiliated with Chrysler Financial (it's picking up all of the business of that train wreck), a third owned by the U.S. government already...is an absolute mess that's up there with the worst-run organizations in the world like CIT Group, AIG, Citi.

For the third time in the last year or so, G-mac is approaching the U.S. government for billions of dollars in aid.  We're into this piece of junk for $12.5 billion already, and it needs another $5.6 bil ASAP.  When do we stop throwing good money after bad?  Pretty soon, the government is going to end up owning the majority of this trash.

This brings me to the part that I like least about this company, it's doing business as Ally Bank sucking in money for CDs from thousands of people, claiming how much more straightforward they are than other banks while at the same time hiding their affiliation with GMAC in the fine print or on the back pages of its website.  I don't care if its CDs yield a whopping (in today's environment where the government punishes savers) 2% and are FDIC insured, I will refuse to give these guys a dime out of principle.

Big Lender GMAC Asks for More U.S. Aid

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In other auto industry news, it looks as though Volvo may end up becoming a Chinese company. 

Ford Says Geely of China Is Preferred Bidder for Volvo

It will be interesting to see if the deal goes through.  If so, this will be the first Chinese company to sell vehicles in the U.S.

Deej

1 Comments – Post Your Own

#1) On October 28, 2009 at 12:43 PM, leohaas (31.35) wrote:

GMAC is not too big to fail. So let it fail!

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