Wednesday, December 30, 2009

Last Bailout of 2009? - There's Still Time For More

Via Twitter

Washington Post reports General Motors got a fresh infusion of cash (that would be our cash) courtesy of the Obama administration. They're awfully generous with our money aren't they?
The government gave GMAC Financial Services another $3.8 billion in cash and took a majority stake in the auto lender, aiming to stabilize the company as it struggles with big losses in its home mortgage unit.
This gives the US Government majority ownership in General Motors, Freddie Mac and Fannie Mae. The government now owns 56% of GM but not to worry they are going to stick to their promise of letting the executives run the company, except when it comes to pay:
Even with the government upping its stake, Treasury officials said the government intends to stick to its policy of leaving day-to-day business decisions about financing to GMAC management. Still, with the additional stake, the government will have the right to appoint two additional directors to the company's board, bringing the total to four of nine, Treasury officials said.

GMAC will continue to be subject to executive pay restrictions imposed by the government's pay czar.
Love the comments on this news at Zero Hedge:

"These slippery creepy bastards are jamming it to the sugarplummed sheeple during the Holly Jolly Holidays. Blank check to FNM/FRE on Xmas eve. Then another $3.8B to GMAC for some New Year kicker laughs.

You'd think after a whole year of government-induced fiscal insanity, they'd at least give us a week off before next year's round of insanity commences."

Amen to that, no rest for the weary pocketbooks of the American taxpayer.

Added note:  to my regular reader and friend Janet -  be sure to check out this comment

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