On Fri, 8 May 2009 20:40:04 -0400, "ATP*"
wrote:


"F. George McDuffee" wrote in message
.. .
On Fri, 8 May 2009 11:42:25 -0700, "Hawke"
wrote:

Note that one of the 19 is GMAC which is now a bank [now wholly
owned by Cerberus]. GMAC is expected to play a key role is the
financing of both Chrysler and GM vehicle purchases and leasing,
but was heavily involved in sub prime lending under Diatech
Funding and ResCap [Residential Capital]. By all objective
standards GMAC is bankrupt, but is likely to get another big wad
of taxpayer cash.

GMAC is not owned by Cerberus. At one time it had more than a 50% stake in
the company but now it's ownership has been reduced to 9.9% as part of the
deal. So things are constantly in flux. As for more government money, that
may come. But if it means credit will keep flowing and it will allow
people
to buy, and more importantly, to finance new car purchases that will be a
good thing. Bottom line is that as bad as the financial situation was the
new administration is taking the necessary steps to fix the problems. But
no
matter how well they do it for some folks it will never be good enough and
they will never give them the credit they deserve. By the way, those folks
are called republicans and they are the people who created the mess Obama
has to clean up.
========
You can't tell the players with a program... Get your program
here....

---
How could a government-run GMAC reshape car sales?
By KIMBERLY S. JOHNSON, AP Auto Writer Kimberly S. Johnson, Ap
Auto Writer - 1 hr 24 mins ago [08 May]

DETROIT - With the federal government almost certain to take
control of GMAC Financial Services, analysts suggest it could
become a loan machine that gives General Motors and Chrysler a
huge advantage over their competitors.

The company was one of 10 financial firms ordered by the
government to raise more capital after taking a stress test. In
GMAC's case, it needs $11.5 billion, and the most likely source
is the government itself.

A government-controlled GMAC would have the power to offer
low-cost loans to buyers of GM and Chrysler cars and trucks as a
way of steering business to the troubled automakers.

"GMAC could become the Freddie Mac and Fannie Mae of auto
finance. {Comment: Run, do not walk to the nearest exit.} It
would probably help sales of GM and Chrysler cars, but it also
increases the risk of taxpayer loss," said Bert Ely, a banking
consultant in Alexandria, Va.

"A very serious question is being raised about how the government
could use a GMAC to advance the fortunes of GM at the expense of
other automakers like Ford and Toyota," he said.

The Obama administration already owns 5 million shares of GMAC,
which it got in exchange for a $5 billion bailout loan. And
Treasury Secretary Timothy Geithner said Friday his department is
poised to offer GMAC more help. {comment: that's a thousand $US
per share folks, and the taxpayers' own it, *NOT* the Obama
administration...}

"We're going to provide substantial support to GMAC," Geithner
said. He said it was "likely" that GMAC will need more money from
the government, "and we'll be prepared to provide that."
{Comment: We? Does he have a mouse in his pocket? What he means
is that the taxpayers will provide more money, more or less at
the point of a gun, and that ain't investment, that's robbery or
extortion.}
snip
-----
For national security reasons, we need domestic auto manufacturers,
preferably ones that can, if they have to, provide powerplants etc. from
American plants. It also makes sense to spend relatively little money to
keep the US auto industry going even if it may eventuallly fail- right now
is not a good time for it to fold up.

=======
This may very well be the case. But why would we want the same
d**kweeds, f**kwits, no-loads, and scam artists that ran the
companies into the ground anywhere near a national defense
critical industry?

It should be crystal clear by now that without a complete "regime
change" or total purge of the existing directors, officers and
most importantly the cadre management, no recovery [or even
survival] can be expected, no matter how much tax payer funds are
"invested." The existing management is too committed to the
Chrysler/GM way, and "business as usual," which, as the last 30
years shows, is over the cliff following Nash, Hudson, Packard,
Studebaker, etc. into the abyss. AFAIK GM still has 106
vice-presidents.

The only apparent way to blast the incumbent management out is
chapter 7 liquidation, with the sale of viable assets to another
company. A chapter 7 may also break the incestuous links between
the automotive corporations, the banks, and the
brokerages/insurance companies [401k, pension plans] that appear
to have caused so much of the problems.

FWIW: An email I just sent one of the Kansas Senators on this
topic is attached. This was in response to a very informative
email that he sent me in response to an earlier anti-bailout
email.

----- start of email -----
To:
Senator Roberts
CC:
President Obama
Senator Brownback
Representative Moran
Representative Tiahrt

Thank you for your responsive and informative email on the
domestic automotive crisis. I am sending copies of this email to
the people on the CC list in the hope this may be of interest to
them also.

Two recent media articles [dated 08 May] that should be of
interest a

http://www.freep.com/article/2009050...SS01/905080415
Note that this is the Detroit Free Press at the center of the
domestic automotive industry, which has long touted governmental
support for the "big" three. Of particular interest are the huge
numbers of reader comments, including a large number of
self-identified UAW members, which are almost entirely against
pouring any more money down these bottomless rat holes, without a
total "regime change" at the top.

The American people, even in a heavily union state such as
Michigan, with considerable vested interest in the preservation
of the domestic automotive industry can now smell the "dead rat,"
and they well understand the futility of "beating a dead horse,"
and "sending good money after bad." The call now is for
immediate chapter 7 [liquidation] bankruptcy for both Chrysler
and General Motors, and an end to the endless subsidies, loans,
grants, etc.

http://www.washingtonpost.com/wp-dyn...050704336.html
This abrupt "sea change" in attitude appears to be due to the
information published by the Washington Post, a paper known for
its liberal democratic and labor bias, detailing how the GM
rescue plan is based on greatly increasing the outsourcing of
jobs (and components), including not only direct manufacturing,
but also IT, engineering, tool and die, etc. to low wage
countries such as South Korea, China, India and Mexico, with the
cars manufactured in those countries and exported to the United
States for sale. This kills not only large numbers of domestic
GM jobs but also destroys the domestic supplier base, who are
even larger employers.

I urge you or your staff to review these articles, and just as
importantly the comments.
----- end of email -----
Unka' George [George McDuffee]
-------------------------------------------
He that will not apply new remedies,
must expect new evils:
for Time is the greatest innovator: and
if Time, of course, alter things to the worse,
and wisdom and counsel shall not alter them to the better,
what shall be the end?

Francis Bacon (1561-1626), English philosopher, essayist, statesman.
Essays, "Of Innovations" (1597-1625).